An entity provided the following information for the current year: Dividend received 500,000 Dividend paid 1,000,000 Cash received from customers 9,000,000 Cash paid to suppliers and employees 6,000,000 Interest received 200,000 Interest paid on long-term debt 400,000 Proceeds from issuing share capital 1,500,000 Proceeds from sale of long-term investments 2,000,000 Cash paid for equity investment at FVOCI 800,000 Income taxes paid 300,000 Proceeds from long-term debt 3,000,000 Write O if the cash flow is under Operating Activities, I if the cash flow is under Investing Activities, and F if the cash flow is under Financing Activities. 1. What is the net cash provided by operating activities? 2. What is the net cash provided by investing activities? 3. What is the net cash provided by financing activities?
Dividend Valuation
Dividend refers to a reward or cash that a company gives to its shareholders out of the profits. Dividends can be issued in various forms such as cash payment, stocks, or in any other form as per the company norms. It is usually a part of the profit that the company shares with its shareholders.
Dividend Discount Model
Dividend payments are generally paid to investors or shareholders of a company when the company earns profit for the year, thus representing growth. The dividend discount model is an important method used to forecast the price of a company’s stock. It is based on the computation methodology that the present value of all its future dividends is equivalent to the value of the company.
Capital Gains Yield
It may be referred to as the earnings generated on an investment over a particular period of time. It is generally expressed as a percentage and includes some dividends or interest earned by holding a particular security. Cases, where it is higher normally, indicate the higher income and lower risk. It is mostly computed on an annual basis and is different from the total return on investment. In case it becomes too high, indicates that either the stock prices are going down or the company is paying higher dividends.
Stock Valuation
In simple words, stock valuation is a tool to calculate the current price, or value, of a company. It is used to not only calculate the value of the company but help an investor decide if they want to buy, sell or hold a company's stocks.
An entity provided the following information for the current year:
Dividend received 500,000
Dividend paid 1,000,000
Cash received from customers 9,000,000
Cash paid to suppliers and employees 6,000,000
Interest received 200,000
Interest paid on long-term debt 400,000
Proceeds from issuing share capital 1,500,000
Proceeds from sale of long-term investments 2,000,000
Cash paid for equity investment at FVOCI 800,000
Income taxes paid 300,000
Proceeds from long-term debt 3,000,000
Write O if the
1. What is the net cash provided by operating activities?
2. What is the net cash provided by investing activities?
3. What is the net cash provided by financing activities?
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
