Total Cash Flow from a Project Is Defined As

question 242

Multiple Choice

Total cash flow from a project is defined as:

• A) Operating cash flow minus capital spending minus the change in net working capital.
• B) Earnings before interest and taxes minus taxes plus depreciation.
• C) Earnings before interest and taxes plus taxes minus depreciation.
• D) Operating cash flow minus the change in net working capital plus capital spending.
• E) Operating cash flow plus depreciation minus capital spending.

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Definitions:

Seasoned Equity Offering

The process by which companies with publicly traded shares issue additional equity to investors, usually to raise capital.

Dilution

Occurs when a company issues more shares, reducing the ownership percentage of existing shareholders.

Market Value Per Share

The current price at which a single share of a company's stock is being traded in the market.

Book Value Per Share

Calculated as the total equity of a company divided by the number of outstanding shares, indicating the per-share value of a company's equity.