Explain influences of financial leverage (debt)
Does financial leverage (i.e. debt) have any influence on the Free Cash Flow, upon the Cash Flow to Shareholders, upon the growth of the company and upon the value of the shares?
Expert
Debt has no impact upon Free Cash Flow since this is, by definition, the flow to shares when the company had no debt. Though, the equity flow does depend upon the debt. It also affects the capitalization and the value of shares. If a company raises its debt, its capitalization reduces and, naturally and the price per share increase.
Flow variables: Any variable, whose magnitude is evaluated over a time period, is termed as glow variable.
The part of the net income which is not distributed to shareholders goes to reserves (to shareholders’ equity). As dividends shows real money, reserves are real money as well. Is it true?
Using the last 3 years of closing stock prices on the first trading day of each month from January, 2010 through December 2012 for Apple (APPL) and the S&P 500 (market) for the same date range 1) &n
Our purpose this week: learning how to understand and interpret financial statements. Assignment: The class should discuss all of the questions listed below as they rel
1 FINANCIAL SERVICES BY BANKS Financial system facilitates the transformation of savings of individuals, government as well as business into investment and consumption. It consists of
Why do a Split?
Straddle & Strangle: In the case of shorting butterfly spread, it can be seen that the gains are limited. However, there exists another strategy known as straddle which produces unlimited gains. This strategy benefits when the trader expects that
Berks Corporation is expecting to have EBIT next year of $12 million, with a standard deviation of $6 million. Berks have $30 million in bonds with coupon of 10%, selling at par, which are being retired at the rate of $2 million annually. Berks also have 100,000 share
Provide a brief overview of Capital Market Efficiency?
Hello, Need a top-notch finance expert to complete a company valuation assignment for me for a class. Will attach details. Please inform me if you have your graduate level resource who is good with company valuations and executive summary writeup of the analysis please. English writing skills ar
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