What is free cash flow? Why is it important in the acquisition of a firm particularly a highly leveraged firm?
What will be an ideal response?
Essentially, free cash flow are the funds available to pay all claimants on a firm. How much is available to meet the needs of creditors, and various equity holders. One definition of FCF = (EBIT) * (1-t) + depreciation + amortization - changes in capital expenditures - changes in NWC.
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Identify and briefly describe the six current drivers of project management.
Fill in the blank(s) with the appropriate word(s).
Which of the following is a form of alternative dispute resolution?
A. pretrial hearing B. settlement conference C. appeal D. mediation
Under the allowance method, when a year-end adjustment is made for estimated uncollectible accounts,
A) total assets decrease. B) liabilities increase. C) total assets are unchanged. D) net income is unchanged.
The result of interperiod income tax allocation is that
a. wide fluctuations in a company's tax liability payments are eliminated. b. tax expense shown in the income statement is equal to the deferred taxes shown on the balance sheet. c. tax liability shown in the balance sheet is equal to the deferred taxes shown on the previous year's balance sheet plus the income tax expense shown on the income statement. d. tax expense shown on the income statement is equal to income taxes payable for the current year plus or minus the change in the deferred tax asset or liability balances for the year.