Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
12th Edition
ISBN: 9781285850030
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
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Chapter 21, Problem 13MC
Summary Introduction

Case summary:

Company H is a hardware chain, focused in “do it yourself” equipment rentals and materials. The one method to utilize excess fund is an acquisition. Company H’s boss and person Z decided to value the potential target of company L. For the purpose of this person Z conducted certain estimation regarding the company L.

To determine: Effect of reducing DSO by firm without affecting sales on its free cash flow both in short run and in the long run and how it effects EVA in long run.

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Chapter 21 Solutions

Intermediate Financial Management (MindTap Course List)

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