briefly explain why (one sentence is enough): Company X is a profitable company that his been consistently investing in the business. As is typical of public firms in the US, Company X has consistently returned cash to shareholders through stock repurchases and dividends. Company X has been saving a significant amount of cash in the last two years.
briefly explain why (one sentence is enough): Company X is a profitable company that his been consistently investing in the business. As is typical of public firms in the US, Company X has consistently returned cash to shareholders through stock repurchases and dividends. Company X has been saving a significant amount of cash in the last two years.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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For each of the following three questions, answer 1) are the following statements true or false? and 2) briefly explain why (one sentence is enough):
- Company X is a profitable company that his been consistently investing in the business.
- As is typical of public firms in the US, Company X has consistently returned cash to shareholders through stock repurchases and dividends.
- Company X has been saving a significant amount of cash in the last two years.
Transcribed Image Text:Consider the following data for Company X:
Cash Flow
For the Fiscal year period ending
LTM
12 months
12 months
12 months
Dec-26-2018
Dec-25-2019
Mar-25-2020
Currency
Million USD
Million USD
Million USD
Net Income
31.2
29.5
30.1
Depreciation & Amort.
19.0
17.0
18.0
(Gain) Loss From Sale of Assets
0.9
1.4
2.0
(Gain) Loss From Sale of
Investments
(0.2)
0.2
Asset Writedown % Restructuring
Costs
0.7
1.1
Stock-Based Compenstation
6.1
7.5
7.1
Other Operating Activities
7.6
3.2
5.1
Change in Acc. Receivable
(5.5)
(10.7)
(11.2)
Change in Inventories
(0.5)
(0.5)
(0.3)
Change in Acc. Payable
Change in Other Net Operating
Assets
3.2
4.2
3.5
1.1
0.1
0.3
Cash From Ops.
63.8
51.5
55.9
Capital Expenditure
(31.1)
(33.4)
(35.5)
Cash Acquisitions
(21.0)
Divestitures
2.5
Invest. In Marketable & Equity
0.9
2.5
3.2
Securt.
Cash from Investing
(51.2)
(30.9)
(29.8)
Short Term Debt Issued
Long Term Debt issued
10.1
6.6
7.2
Total Debt issued
10.1
6.6
7.2
Short term debt repaid
Long term debt repaid
(3.7)
(3.7)
(6.5)
(7.0)
Total debt repaid
(6.5)
(7.0)
Issuance of Common Stock
1.2
1.1
1.2
Repurchase of Common Stock
(0.9)
(1.4)
(2.4)
Total Dividends Paid
Other Financing Activities
(0.8)
(2.7)
0.8
Cash from Financing
5.9
(2.9)
(0.2)
Net Change in Cash
18.5
17.7
25.9
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