Vipont Motors Has Reported the Following on Its Year End

question 111

Multiple Choice

Vipont Motors has reported the following on its year end cash flow statement: cash provided by operating activities $ 210,000; cash used in investing activities $ 155,000; cash provided by financing activities $ 95,000. What amount would represent Vipont's free cash flow?

• A) $ 210,000
• B) $ 150,000
• C) $ 55,000
• D) $ (40,000)

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Definitions:

Unlevered Cost

refers to the cost of an investment or project that does not include the effect of financial leverage, showing its risk and return profile without debt.

Tax Rate

The portion of one’s earnings or a company's profits that is required to be paid to the government as tax.

Market Value

The trading price at present for assets or services in the market.

Debt Equity Ratio

This metric assesses a corporation's financial leverage by comparing its overall liabilities to the equity of its stockholders.