Discounted cash flow

between the face value and carrying value for these notes is due to an unamortized discount of $4,049. The cash interest payment on these notes during fiscal 2009 equals $38,438, and this number can be calculated by taking the face value of $410,000 and multiplying it by the coupon or face interest rate of 9.375%. This amount would also be credited to cash when journalizing the entry. Although the cash payment is $38,438, this does not mean that the interest expense will be this same amount.…

This was a great exercise for me as I have been thinking about my debt and know that I need to get a handle on things. While I do not have a house payment, the HELOC and the high credit card debt I carry are a concern, particulary as I begin to think more about retirement. I do put as much as allowable into my retirement and I own stock in several major corporations, but this exercise was effective in showing me how much money I waste each year on interest. After calculating the debt…

Financial management is an essential part of a non-profit organization. In the chapter, Worth states that financial management involves analyzing different financial ratios that can help explain trends and the financial health of an organization. (Worth, 2017) Something that stood out to me in the beginning of the chapter was this line from the chapter; “a well-managed organization will strive to achieve diverse revenue sources, both to minimize risk and to maximize autonomy…” I agree with this…

million. Additionally, the investment decision would depend on the company’s cash flows. For instance, the NPV “assumes cash flows are reinvested at the cost of capital,” while the IRR “assumes cash flows are reinvested at the internal rate of return” (Peterson & Fabozzi, 2002, p. 89). Implications of the NPV and IRR Calculations…

To request approval to procure contracts for the provision of guardianship services for Department of Aging and Disability Services (DADS) wards in areas of Texas not currently being served. In 2004, The Department of Family and Protective Services transferred the Guardianship Program to DADS through a memorandum of Understanding. House Bill 6, 79th Legislature Regular Session, 2005, transferred statutory authority to DADS effective September 1, 2005. Rules relating to the DADS Guardianship…

Positive cash flow means you are bringing in more cash than is flowing out and with a negative cash flow, you have more cash flowing out than in. The cash flow statement is a key indicator in determining the financial health of a company. “Companies can remain in business without turning a profit but they won’t last for long with a negative cash flow,” (Wagner, 2005, p. 17). We’ve all heard the phrase in business, “cash is king.” Having cash on hand affords companies better…

sales, other operating costs, and tax rates are not affected, and assume that the same depreciation method is used for tax and stockholder reporting purposes.Answer | | | | | Selected Answer: | Companies' cash positions would decline. | Correct Answer: | Companies' cash positions would decline. | | | | | Question 9 4 out of 4 points | | | Which of the following statements is CORRECT?Answer | | | | | Selected Answer: | One way to increase EVA is to…

Cashflows Year | Net Annual Cash Flow | | | | | Cost | (250,000) | | | |…

they probably have more liquid assets available. GameStop does not have much in the way of liquid assets because they are still working on expanding even more. Between 2010 and 2011, total store numbers increased from 6,450 to 6,670. This is why cash and liquid assets are lower in 2011, because the company has been expanding and working on building more revenue up. It seems that GameStop is continuing to reinvest in itself by expanding and making the company available to more…

According to The Nature of Science, it is “a determination of what is most likely to be correct at the current time with the evidence at our disposal.” It aims for measurable results through testing and analysis. It views knowledge as a systematic enterprise that has the ability to build and organize knowledge in the form of testable explanations and predictions about the universe. It also refers to a body of knowledge that is able to be rationally explained and reliably applied. It is viewed as…