Why is an understanding of cash flow so important in the study of finance?
What will be an ideal response?
Answer: A firm may show robust accounting profits, yet still get into serious financial trouble or even go bankrupt. It is only cash flow that allows accurate and insightful financial analysis, which is the foundation of a firm's long-run planning and value maximization.
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The primary purpose of company metrics is ________
A) to achieve maximum customer satisfaction B) to make optimal use of the organization's resources C) to maintain an ongoing measure of marketing performance D) to maximize the organization's return on assets E) to minimize the defects in the organization's products
Which theory supports the idea that stereotypes are ubiquitous and racism is an everyday experience for people of color ?
a. identity-based motivation theory *b. critical race theory c. equity theory d. social comparison theory
For an investment in a stock, the probability of the return being -10.0% is 0.3, 10.0% is 0.4, and 30.0% is 0.3. Given the probability distributions, what is the expected rate of return for the investment?
A. ?10.0% B. ?9.5% C. ?15.0% D. ?12.5% E. ?13.0%
Tangshan Mining has extended credit terms of 3/15 net 30 EOM. The cost of giving up the cash discount, assuming payment would be made on the last day of the credit period, would be ________
A) 75.26% B) 3.1% C) 72.99% D) 37.12%