The executive team at Midas Muffler and Brake decides to publish a statement of its available cash that subtracts from the cash, the planned investments in new shops and new technology. The statement can best be labeled a measure of
a. pro-forma earnings
b. free cash flow.
c. EBITDA (earnings before interest, taxes, depreciation, and amortization.
d. EVA (economic value added)
Answer: b. free cash flow.
Business
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Using Alonso's forecasted price and the bond information in Exhibit 2, the expected 6-month total return of the Treasury 4.125% 15 May 2011 is closest to (assume zero accrued interest at purchase):
A. ?0.90%. B. 1.15%. C. 1.56%.
Business
A lease for a three-year term that called for rent to be paid quarterly expired. If at the end of the term, the landlord were to accept another payment of rent, the lease would be
A. extended another three years. B. a periodic tenancy. C. extended for a term not to exceed one year. D. cancelled in any event.
Business