Quiz Ch 11 – Understanding Free Cash Flow Formula
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
What is the equation for free cash flow?
What is the equation for free cash flow?
What is the treatment of a decrease in prepaid expenses when using the indirect method to calculate net cash provided by operating activities?
How is an increase in accounts payable treated on a statement of cash flows prepared using the indirect method?
What action should you take regarding the Xerox and Canon bonds with an expectation of rising interest rates?
How could a bond manager exploit a hump in the yield curve at the 5-year point?
How does a change in a bond’s yield to maturity affect its price compared to an equal-magnitude yield decrease?
What action should you take if you expect the yield spread between AA and AAA bonds to revert to its historical level (25 basis points from the current 9 basis points)?