--%>
Assignment Help - homework help

Relationship between flow to shareholders and net income

Is there any relationship in between the flow to shareholders and the net income?

E

Expert

Verified

The relation among net income (BFO) and the obtainable flow to shareholders (CFac) in a year is the given here: CFac = BFO – ΔNOF – ΔAFN + ΔD + ΔEvc*, here ΔNOF is the enhance in working capital requirements, ¬AFN the enhance in net fixed assets, ΔD the enhance in financial debt and ΔEvc* the rise in Shareholders’ Equity that is not because of profits (i.e. reserves, conversion of convertibles).

   Related Questions in Corporate Finance

  • Q : Earnings management What do you mean by

    What do you mean by Earnings management and what are their actions and activities?

    		•
  • Q : Problem on optimal capital structure

    XYZ Company has debt/assets ratio 50%, that is too high and it must be at 45% to be optimal. This debt reduction must also reduce the bankruptcy costs by $30 million. At present, XYZ has 5 million shares of common stock selling at $50 each. The tax rate of XYZ is 30%.

    		•
  • Q : Variance of a portfolio The variance of

    The variance of a portfolio of 40 stocks will be the addition of _______ variance terms and _______ covariance terms. A) 40; 1560B) 40; 1600C) 80; 40D) 1600; 40

    		•
  • Q : Strategy of Bear Spread State when

    State when markets are anticipated to go down then what is the Strategy of Bear Spread?

    		•
  • Q : Finance I need the answers for the

    I need the answers for the midterm exam for FIN6000

    		•
  • Q : Intrnational financer what are the

    what are the objectives of international finance

    		•
  • Q : Benefits of working capital requirement

    Benefits of working capital requirement estimation: • Helps to judge the efficiency of utilization of working capital in generation of sales • Cost of capital aspect

    		•
  • Q : Is net income of a year is doubtful for

    Is the net income of a year money the company made that given year or is this a number whose importance is quite doubtful?

    		•
  • Q : Problem on leasing Johnathan Lewis is

    Johnathan Lewis is looking into the possibility of buying several coin-operated vending machines and put them in local hospitals. Each machine costs $2000, that he will depreciate on a straight-line basis over 8 years. The machine will dispense soft-drink cans at 75 c

    		•
  • Q : Zero coupon bonds problem Shana wants

    Shana wants to purchase 5-year zero coupon bonds with a face value of $1,000. Her opportunity cost is 8.5 %. Supposing annual compounding, what would be the present market price of such bonds? (Round to the closest dollar.) (a) $1,023  (b) $665  (c) $890&nbs

    		•