Solutions @xjManual
Solutions Manual @xj
Corporate Finance @xj
Ross, Westerfield, and Jaffe
@xj @xj @xj
10th edition
@xj @xj
All @xjChapters @xjIncluded @xj⬛
@ x j @ x j ⬛⬛
@xj
All @xjAnswers @xjIncluded @xj ⬛@xj⬛@xj⬛@xj
,CHAPTER 1 @ xj
INTRODUCTION TO CORPORATE @xj @xj
FINANCE
@xj
Answers @xjto @xjConcept @xjQuestions
1. In @ x j the @xjcorporate @xjform @xjof @xjownership, @ x j the @xjshareholders @xjare @xjthe @xjowners @xjof @xjthe
@xjfirm. @ x j The @xjshareholders @xjelect @xjthe @xjdirectors @xjof @xjthe @xjcorporation, @xjwho @xjin @xjturn
@xjappoint @xjthe @xjfirm’s @xjmanagement. @xjThis @xjseparation @xjof @xjownership @ x j from @ x j control @ x j in
@ x j the @ x j corporate @ x j form @ x j of @ x j organization @ x j is @ x j what @ x j causes @ x j agency @ x j problems
@ x j to @xjexist. @xjManagement @xjmay @xjact @xjin @xjits @xjown @xjor @xjsomeone @xjelse’s @xjbest @xjinterests,
@xjrather @xjthan @xjthose @xjof @xjthe @xjshareholders. @xjIf @xjsuch @xjevents @xjoccur, @xjthey @xjmay @xjcontradict
@xjthe @xjgoal @xjof @xjmaximizing @xjthe @xjshare @xjprice @xjof @xjthe @xjequity @xjof @xjthe @xjfirm.
2. Such @xjorganizations @xjfrequently @xjpursue @xjsocial @xjor @xjpolitical @xjmissions, @xjso @xjmany @xjdifferent
@xjgoals @xjare @xjconceivable. @xjOne @xjgoal @xjthat @xjis @xjoften @xjcited @xjis @xjrevenue @xjminimization; @xji.e.,
@xjprovide @xjwhatever @xjgoods @xjand @xjservices @xjare @xjoffered @xjat @xjthe @xjlowest @xjpossible @xjcost @xjto
@xjsociety. @xjA @xjbetter @xjapproach @xjmight @xjbe @xjto @xjobserve @xjthat @xjeven @ x j a @ x j not-for-profit
@ x j business @ x j has @ x j equity. @ x j Thus, @ x j one @ x j answer @ x j is @ x j that @ x j the @ x j appropriate
@ x j goal @ x j is @ x j to @xjmaximize @xjthe @xjvalue @xjof @xjthe @xjequity.
3. Presumably, @xjthe @xjcurrent @xjstock @xjvalue @xjreflects @xjthe @xjrisk, @xjtiming, @xjand @xjmagnitude @xjof @xjall
@xjfuture @xjcash @xjflows, @xjboth @xjshort-term @xjand @xjlong-term. @xjIf @xjthis @xjis @xjcorrect, @xjthen @xjthe
@xjstatement @xjis @xjfalse.
4. An @xjargument @xjcan @xjbe @xjmade @xjeither @xjway. @xjAt @xjthe @xjone @xjextreme, @xjwe @xjcould @xjargue @xjthat
@xjin @xja @xjmarket @xjeconomy, @ x j all @xjof @xjthese @xjthings @xjare @xjpriced. @xjThere @xjis @xjthus @xjan
@xjoptimal @xjlevel @xjof, @xjfor @xjexample, @xjethical @xjand/or @xjillegal @xjbehavior, @xjand @xjthe @xjframework
@xjof @xjstock @xjvaluation @xjexplicitly @xjincludes @xjthese. @xjAt @xjthe @xjother @xjextreme, @xjwe @xjcould @xjargue
@xjthat @xjthese @xjare @xjnon-economic @xjphenomena @xjand @xjare @xjbest @xjhandled @xjthrough @xjthe @xjpolitical
@ x j process. @xjA @xjclassic @xj(and @xjhighly @xjrelevant) @xjthought @xjquestion @xjthat @xjillustrates @xjthis
@xjdebate @xjgoes @xjsomething @ x j like @xjthis: @xj“A @xjfirm @xjhas @xjestimated @xjthat @xjthe @xjcost @xjof
@xjimproving @xjthe @xjsafety @xjof @xjone @xjof @xjits @xjproducts @xjis @xj$30 @xjmillion. @xjHowever, @xjthe @ x j firm
@xjbelieves @xjthat @xjimproving @ x j the @xjsafety @xjof @xjthe @xjproduct @xjwill @xjonly @ x j save @xj$20 @xjmillion
@xjin @xjproduct @xjliability @xjclaims. @xjWhat @xjshould @xjthe @xjfirm @xjdo?”
5. The @xjgoal @xjwill @xjbe @xjthe @xjsame, @xjbut @xjthe @xjbest @xjcourse @xjof @xjaction @xjtoward @xjthat @xjgoal @xjmay
@xjbe @xjdifferent @xjbecause @xjof @xjdiffering @xjsocial, @xjpolitical, @xjand @xjeconomic @xjinstitutions.
6. The @xjgoal @xjof @xjmanagement @xjshould @xjbe @xjto @xjmaximize @xjthe @xjshare @xjprice @xjfor @xjthe @xjcurrent
@xjshareholders. @xjIf @xjmanagement @xjbelieves @xjthat @xjit @xjcan @xjimprove @xjthe @xjprofitability @xjof @xjthe
@xjfirm @ x j so @xjthat @xjthe @ x j share @xjprice @xjwill @ x j exceed @xj$35, @xjthen @xjthey @xjshould @xjfight @xjthe
@xjoffer @xjfrom @xjthe @xjoutside @xjcompany. @xjIf @xjmanagement @xjbelieves @xjthat @xjthis @xjbidder @xjor @xjother
@xjunidentified @xjbidders @xjwill @xjactually @xjpay @xjmore @xjthan @xj$35 @xjper @xjshare @xjto @xjacquire @xjthe
@xjcompany, @xjthen @xjthey @xjshould @xjstill @xjfight @xjthe @xjoffer. @xjHowever, @xjif @xjthe @xjcurrent
@xjmanagement @xjcannot @xjincrease @ x j the @xjvalue @xjof @xjthe @xjfirm @xjbeyond @xjthe @xjbid @xjprice, @xjand
@xjno @xjother @xjhigher @xjbids @xjcome @xjin, @xjthen @xjmanagement @xjis @xjnot @xjacting @ x j in @ x j the
@ x j interests @ x j of @ x j the @ x j shareholders @ x j by @ x j fighting @ x j the @ x j offer. @ x j Since @ x j current
@ x j managers @ x j often @ x j lose
, their jobs when the corporation is acquired, poorly monitored managers have an incentive to fight
corporate takeovers in situations such as this.
7. We would expect agency problems to be less severe in other countries, primarily due to the relatively
small percentage of individual ownership. Fewer individual owners should reduce the number of
diverse opinions concerning corporate goals. The high percentage of institutional ownership might
lead to a higher degree of agreement between owners and managers on decisions concerning risky
projects. In addition, institutions may be better able to implement effective monitoring mechanisms
on managers than can individual owners, based on the institutions’ deeper resources and experiences
with their own management.
8. The increase in institutional ownership of stock in the United States and the growing activism of
these large shareholder groups may lead to a reduction in agency problems for U.S. corporations and
a more efficient market for corporate control. However, this may not always be the case. If the
managers of the mutual fund or pension plan are not concerned with the interests of the investors, the
agency problem could potentially remain the same, or even increase since there is the possibility of
agency problems between the fund and its investors.
9. How much is too much? Who is worth more, Larry Ellsion or Tiger Woods? The simplest answer is
that there is a market for executives just as there is for all types of labor. Executive compensation is
the price that clears the market. The same is true for athletes and performers. Having said that, one
aspect of executive compensation deserves comment. A primary reason executive compensation has
grown so dramatically is that companies have increasingly moved to stock-based compensation.
Such movement is obviously consistent with the attempt to better align stockholder and management
interests. In recent years, stock prices have soared, so management has cleaned up. It is sometimes
argued that much of this reward is simply due to rising stock prices in general, not managerial
performance. Perhaps in the future, executive compensation will be designed to reward only
differential performance, i.e., stock price increases in excess of general market increases.
10. Maximizing the current share price is the same as maximizing the future share price at any future
period. The value of a share of stock depends on all of the future cash flows of company. Another
way to look at this is that, barring large cash payments to shareholders, the expected price of the
stock must be higher in the future than it is today. Who would buy a stock for $100 today when the
share price in one year is expected to be $80?
3
, Solutions
@xjManual
CHAPTER 2 @ xj
FINANCIAL STATEMENTS AND CASH @xj @xj @xj
FLOW
@xj
Answers @xjto @xjConcepts @xjReview @xjand @xjCritical @xjThinking @xjQuestions
1. True. @xjEvery @xjasset @xjcan @xjbe @xjconverted @xjto @xjcash @xjat @xjsome @xjprice. @xjHowever, @xjwhen @xjwe
@xjare @xjreferring @xjto @xja @xjliquid @xjasset, @xjthe @xjadded @xjassumption @xjthat @xjthe @xjasset @xjcan @xjbe
@xjquickly @xjconverted @xjto @xjcash @xjat @xjor @xjnear @xjmarket @xjvalue @xjis @xjimportant.
2. The @xjrecognition @xjand @xjmatching @xjprinciples @xjin @xjfinancial @xjaccounting @xjcall @xjfor @xjrevenues,
@xjand @xjthe @xjcosts @xjassociated @xjwith @xjproducing @xjthose @xjrevenues, @xjto @xjbe @xj“booked” @xjwhen
@xjthe @xjrevenue @xjprocess @xjis @xjessentially @xjcomplete, @xjnot @xjnecessarily @xjwhen @xjthe @xjcash @xjis
@xjcollected @xjor @xjbills @xjare @xjpaid. @xjNote @xjthat @xjthis @xjway @xjis @xjnot @xjnecessarily @xjcorrect; @xjit’s
@xjthe @xjway @xjaccountants @xjhave @xjchosen @xjto @xjdo @xjit.
3. The @xjbottom @xjline @xjnumber @ xj shows @xj the @xjchange @xjin @ x j the @ xj cash @ x j balance @xj on @ xj the @xjbalance
@xjsheet. @xjAs @xj such, @ x j it @ x j is @ x j not @xja @xjuseful @xjnumber @xjfor @xjanalyzing @xja @xjcompany.
4. The @xjmajor @xjdifference @xjis @xjthe @xjtreatment @xjof @xjinterest @xjexpense. @xjThe @xjaccounting @xjstatement
@xjof @xjcash @xjflows @ x j treats @xjinterest @xjas @xjan @xjoperating @xjcash @xjflow, @xjwhile @xjthe @xjfinancial
@xjcash @xjflows @xjtreat @xjinterest @xjas @xja @xjfinancing @ x j cash @xjflow. @xjThe @xjlogic @xjof @xjthe
@xjaccounting @xjstatement @xjof @xjcash @xjflows @xjis @xjthat @xjsince @xjinterest @xjappears @xjon @xjthe @xjincome
@xjstatement, @xjwhich @xjshows @xjthe @xjoperations @xjfor @xjthe @xjperiod, @xjit @xjis @xjan @xjoperating @xjcash
@xjflow. @xjIn @xjreality, @xjinterest @xjis @xja @xjfinancing @xjexpense, @xjwhich @xjresults @xjfrom @xjthe
@xjcompany’s @xjchoice @xjof @xjdebt @xjand @xjequity. @xjWe @xjwill @xjhave @xjmore @xjto @xjsay @xjabout @xjthis @xjin
@xja @xjlater @xjchapter. @xjWhen @xjcomparing @xjthe @xjtwo @xjcash @xjflow @xjstatements, @xjthe @xjfinancial
@xjstatement @xjof @xjcash @xjflows @xjis @xja @xjmore @xjappropriate @xjmeasure @xjof @xjthe @xjcompany’s
@xjperformance @ x j because @xjof @xjits @xjtreatment @xjof @xjinterest.
5. Market @ x j values @ x j can @ x j never @ x j be @ x j negative. @ x j Imagine @ x j a @ x j share @ x j of @ x j stock @ x j selling
@ x j for @ x j –$20. @ x j This @ x j would @ x j mean @xjthat @xjif @xjyou @xjplaced @xjan @xjorder @xjfor @xj100 @xjshares,
@xjyou @xjwould @xjget @xjthe @xjstock @xjalong @xjwith @ x j a @xjcheck @ x j for @xj$2,000. @ x j How @xjmany @xjshares
@xjdo @xjyou @xjwant @xjto @xjbuy? @xjMore @xjgenerally, @xjbecause @xjof @xjcorporate @xjand @xjindividual
@ x j bankruptcy @xjlaws, @xjnet @xjworth @xjfor @xja @xjperson @xjor @xja @xjcorporation @xjcannot @xjbe @xjnegative,
@xjimplying @xjthat @xjliabilities @xjcannot @xjexceed @xjassets @xjin @xjmarket @xjvalue.
6. For @xja @xjsuccessful @xjcompany @xjthat @xjis @xjrapidly @xjexpanding, @xjfor @xjexample, @xjcapital @xjoutlays
@xjwill @xjbe @xjlarge, @ x j possibly @xjleading @xjto @xjnegative @xjcash @xjflow @xjfrom @xjassets. @xjIn @xjgeneral,
@xjwhat @xjmatters @xjis @xjwhether @xjthe @xjmoney @xjis @xjspent @xjwisely, @xjnot @xjwhether @xjcash @xjflow @xjfrom
@xjassets @xjis @xjpositive @xjor @xjnegative.
7. It’s @xjprobably @xjnot @xja @xjgood @xjsign @xjfor @xjan @xjestablished @xjcompany @xjto @xjhave @xjnegative @xjcash
@xjflow @xjfrom @xjoperations, @xjbut @xjit @xjwould @xjbe @xjfairly @xjordinary @xjfor @xja @xjstart-up, @xjso @xjit
@xjdepends.
4
Solutions Manual @xj
Corporate Finance @xj
Ross, Westerfield, and Jaffe
@xj @xj @xj
10th edition
@xj @xj
All @xjChapters @xjIncluded @xj⬛
@ x j @ x j ⬛⬛
@xj
All @xjAnswers @xjIncluded @xj ⬛@xj⬛@xj⬛@xj
,CHAPTER 1 @ xj
INTRODUCTION TO CORPORATE @xj @xj
FINANCE
@xj
Answers @xjto @xjConcept @xjQuestions
1. In @ x j the @xjcorporate @xjform @xjof @xjownership, @ x j the @xjshareholders @xjare @xjthe @xjowners @xjof @xjthe
@xjfirm. @ x j The @xjshareholders @xjelect @xjthe @xjdirectors @xjof @xjthe @xjcorporation, @xjwho @xjin @xjturn
@xjappoint @xjthe @xjfirm’s @xjmanagement. @xjThis @xjseparation @xjof @xjownership @ x j from @ x j control @ x j in
@ x j the @ x j corporate @ x j form @ x j of @ x j organization @ x j is @ x j what @ x j causes @ x j agency @ x j problems
@ x j to @xjexist. @xjManagement @xjmay @xjact @xjin @xjits @xjown @xjor @xjsomeone @xjelse’s @xjbest @xjinterests,
@xjrather @xjthan @xjthose @xjof @xjthe @xjshareholders. @xjIf @xjsuch @xjevents @xjoccur, @xjthey @xjmay @xjcontradict
@xjthe @xjgoal @xjof @xjmaximizing @xjthe @xjshare @xjprice @xjof @xjthe @xjequity @xjof @xjthe @xjfirm.
2. Such @xjorganizations @xjfrequently @xjpursue @xjsocial @xjor @xjpolitical @xjmissions, @xjso @xjmany @xjdifferent
@xjgoals @xjare @xjconceivable. @xjOne @xjgoal @xjthat @xjis @xjoften @xjcited @xjis @xjrevenue @xjminimization; @xji.e.,
@xjprovide @xjwhatever @xjgoods @xjand @xjservices @xjare @xjoffered @xjat @xjthe @xjlowest @xjpossible @xjcost @xjto
@xjsociety. @xjA @xjbetter @xjapproach @xjmight @xjbe @xjto @xjobserve @xjthat @xjeven @ x j a @ x j not-for-profit
@ x j business @ x j has @ x j equity. @ x j Thus, @ x j one @ x j answer @ x j is @ x j that @ x j the @ x j appropriate
@ x j goal @ x j is @ x j to @xjmaximize @xjthe @xjvalue @xjof @xjthe @xjequity.
3. Presumably, @xjthe @xjcurrent @xjstock @xjvalue @xjreflects @xjthe @xjrisk, @xjtiming, @xjand @xjmagnitude @xjof @xjall
@xjfuture @xjcash @xjflows, @xjboth @xjshort-term @xjand @xjlong-term. @xjIf @xjthis @xjis @xjcorrect, @xjthen @xjthe
@xjstatement @xjis @xjfalse.
4. An @xjargument @xjcan @xjbe @xjmade @xjeither @xjway. @xjAt @xjthe @xjone @xjextreme, @xjwe @xjcould @xjargue @xjthat
@xjin @xja @xjmarket @xjeconomy, @ x j all @xjof @xjthese @xjthings @xjare @xjpriced. @xjThere @xjis @xjthus @xjan
@xjoptimal @xjlevel @xjof, @xjfor @xjexample, @xjethical @xjand/or @xjillegal @xjbehavior, @xjand @xjthe @xjframework
@xjof @xjstock @xjvaluation @xjexplicitly @xjincludes @xjthese. @xjAt @xjthe @xjother @xjextreme, @xjwe @xjcould @xjargue
@xjthat @xjthese @xjare @xjnon-economic @xjphenomena @xjand @xjare @xjbest @xjhandled @xjthrough @xjthe @xjpolitical
@ x j process. @xjA @xjclassic @xj(and @xjhighly @xjrelevant) @xjthought @xjquestion @xjthat @xjillustrates @xjthis
@xjdebate @xjgoes @xjsomething @ x j like @xjthis: @xj“A @xjfirm @xjhas @xjestimated @xjthat @xjthe @xjcost @xjof
@xjimproving @xjthe @xjsafety @xjof @xjone @xjof @xjits @xjproducts @xjis @xj$30 @xjmillion. @xjHowever, @xjthe @ x j firm
@xjbelieves @xjthat @xjimproving @ x j the @xjsafety @xjof @xjthe @xjproduct @xjwill @xjonly @ x j save @xj$20 @xjmillion
@xjin @xjproduct @xjliability @xjclaims. @xjWhat @xjshould @xjthe @xjfirm @xjdo?”
5. The @xjgoal @xjwill @xjbe @xjthe @xjsame, @xjbut @xjthe @xjbest @xjcourse @xjof @xjaction @xjtoward @xjthat @xjgoal @xjmay
@xjbe @xjdifferent @xjbecause @xjof @xjdiffering @xjsocial, @xjpolitical, @xjand @xjeconomic @xjinstitutions.
6. The @xjgoal @xjof @xjmanagement @xjshould @xjbe @xjto @xjmaximize @xjthe @xjshare @xjprice @xjfor @xjthe @xjcurrent
@xjshareholders. @xjIf @xjmanagement @xjbelieves @xjthat @xjit @xjcan @xjimprove @xjthe @xjprofitability @xjof @xjthe
@xjfirm @ x j so @xjthat @xjthe @ x j share @xjprice @xjwill @ x j exceed @xj$35, @xjthen @xjthey @xjshould @xjfight @xjthe
@xjoffer @xjfrom @xjthe @xjoutside @xjcompany. @xjIf @xjmanagement @xjbelieves @xjthat @xjthis @xjbidder @xjor @xjother
@xjunidentified @xjbidders @xjwill @xjactually @xjpay @xjmore @xjthan @xj$35 @xjper @xjshare @xjto @xjacquire @xjthe
@xjcompany, @xjthen @xjthey @xjshould @xjstill @xjfight @xjthe @xjoffer. @xjHowever, @xjif @xjthe @xjcurrent
@xjmanagement @xjcannot @xjincrease @ x j the @xjvalue @xjof @xjthe @xjfirm @xjbeyond @xjthe @xjbid @xjprice, @xjand
@xjno @xjother @xjhigher @xjbids @xjcome @xjin, @xjthen @xjmanagement @xjis @xjnot @xjacting @ x j in @ x j the
@ x j interests @ x j of @ x j the @ x j shareholders @ x j by @ x j fighting @ x j the @ x j offer. @ x j Since @ x j current
@ x j managers @ x j often @ x j lose
, their jobs when the corporation is acquired, poorly monitored managers have an incentive to fight
corporate takeovers in situations such as this.
7. We would expect agency problems to be less severe in other countries, primarily due to the relatively
small percentage of individual ownership. Fewer individual owners should reduce the number of
diverse opinions concerning corporate goals. The high percentage of institutional ownership might
lead to a higher degree of agreement between owners and managers on decisions concerning risky
projects. In addition, institutions may be better able to implement effective monitoring mechanisms
on managers than can individual owners, based on the institutions’ deeper resources and experiences
with their own management.
8. The increase in institutional ownership of stock in the United States and the growing activism of
these large shareholder groups may lead to a reduction in agency problems for U.S. corporations and
a more efficient market for corporate control. However, this may not always be the case. If the
managers of the mutual fund or pension plan are not concerned with the interests of the investors, the
agency problem could potentially remain the same, or even increase since there is the possibility of
agency problems between the fund and its investors.
9. How much is too much? Who is worth more, Larry Ellsion or Tiger Woods? The simplest answer is
that there is a market for executives just as there is for all types of labor. Executive compensation is
the price that clears the market. The same is true for athletes and performers. Having said that, one
aspect of executive compensation deserves comment. A primary reason executive compensation has
grown so dramatically is that companies have increasingly moved to stock-based compensation.
Such movement is obviously consistent with the attempt to better align stockholder and management
interests. In recent years, stock prices have soared, so management has cleaned up. It is sometimes
argued that much of this reward is simply due to rising stock prices in general, not managerial
performance. Perhaps in the future, executive compensation will be designed to reward only
differential performance, i.e., stock price increases in excess of general market increases.
10. Maximizing the current share price is the same as maximizing the future share price at any future
period. The value of a share of stock depends on all of the future cash flows of company. Another
way to look at this is that, barring large cash payments to shareholders, the expected price of the
stock must be higher in the future than it is today. Who would buy a stock for $100 today when the
share price in one year is expected to be $80?
3
, Solutions
@xjManual
CHAPTER 2 @ xj
FINANCIAL STATEMENTS AND CASH @xj @xj @xj
FLOW
@xj
Answers @xjto @xjConcepts @xjReview @xjand @xjCritical @xjThinking @xjQuestions
1. True. @xjEvery @xjasset @xjcan @xjbe @xjconverted @xjto @xjcash @xjat @xjsome @xjprice. @xjHowever, @xjwhen @xjwe
@xjare @xjreferring @xjto @xja @xjliquid @xjasset, @xjthe @xjadded @xjassumption @xjthat @xjthe @xjasset @xjcan @xjbe
@xjquickly @xjconverted @xjto @xjcash @xjat @xjor @xjnear @xjmarket @xjvalue @xjis @xjimportant.
2. The @xjrecognition @xjand @xjmatching @xjprinciples @xjin @xjfinancial @xjaccounting @xjcall @xjfor @xjrevenues,
@xjand @xjthe @xjcosts @xjassociated @xjwith @xjproducing @xjthose @xjrevenues, @xjto @xjbe @xj“booked” @xjwhen
@xjthe @xjrevenue @xjprocess @xjis @xjessentially @xjcomplete, @xjnot @xjnecessarily @xjwhen @xjthe @xjcash @xjis
@xjcollected @xjor @xjbills @xjare @xjpaid. @xjNote @xjthat @xjthis @xjway @xjis @xjnot @xjnecessarily @xjcorrect; @xjit’s
@xjthe @xjway @xjaccountants @xjhave @xjchosen @xjto @xjdo @xjit.
3. The @xjbottom @xjline @xjnumber @ xj shows @xj the @xjchange @xjin @ x j the @ xj cash @ x j balance @xj on @ xj the @xjbalance
@xjsheet. @xjAs @xj such, @ x j it @ x j is @ x j not @xja @xjuseful @xjnumber @xjfor @xjanalyzing @xja @xjcompany.
4. The @xjmajor @xjdifference @xjis @xjthe @xjtreatment @xjof @xjinterest @xjexpense. @xjThe @xjaccounting @xjstatement
@xjof @xjcash @xjflows @ x j treats @xjinterest @xjas @xjan @xjoperating @xjcash @xjflow, @xjwhile @xjthe @xjfinancial
@xjcash @xjflows @xjtreat @xjinterest @xjas @xja @xjfinancing @ x j cash @xjflow. @xjThe @xjlogic @xjof @xjthe
@xjaccounting @xjstatement @xjof @xjcash @xjflows @xjis @xjthat @xjsince @xjinterest @xjappears @xjon @xjthe @xjincome
@xjstatement, @xjwhich @xjshows @xjthe @xjoperations @xjfor @xjthe @xjperiod, @xjit @xjis @xjan @xjoperating @xjcash
@xjflow. @xjIn @xjreality, @xjinterest @xjis @xja @xjfinancing @xjexpense, @xjwhich @xjresults @xjfrom @xjthe
@xjcompany’s @xjchoice @xjof @xjdebt @xjand @xjequity. @xjWe @xjwill @xjhave @xjmore @xjto @xjsay @xjabout @xjthis @xjin
@xja @xjlater @xjchapter. @xjWhen @xjcomparing @xjthe @xjtwo @xjcash @xjflow @xjstatements, @xjthe @xjfinancial
@xjstatement @xjof @xjcash @xjflows @xjis @xja @xjmore @xjappropriate @xjmeasure @xjof @xjthe @xjcompany’s
@xjperformance @ x j because @xjof @xjits @xjtreatment @xjof @xjinterest.
5. Market @ x j values @ x j can @ x j never @ x j be @ x j negative. @ x j Imagine @ x j a @ x j share @ x j of @ x j stock @ x j selling
@ x j for @ x j –$20. @ x j This @ x j would @ x j mean @xjthat @xjif @xjyou @xjplaced @xjan @xjorder @xjfor @xj100 @xjshares,
@xjyou @xjwould @xjget @xjthe @xjstock @xjalong @xjwith @ x j a @xjcheck @ x j for @xj$2,000. @ x j How @xjmany @xjshares
@xjdo @xjyou @xjwant @xjto @xjbuy? @xjMore @xjgenerally, @xjbecause @xjof @xjcorporate @xjand @xjindividual
@ x j bankruptcy @xjlaws, @xjnet @xjworth @xjfor @xja @xjperson @xjor @xja @xjcorporation @xjcannot @xjbe @xjnegative,
@xjimplying @xjthat @xjliabilities @xjcannot @xjexceed @xjassets @xjin @xjmarket @xjvalue.
6. For @xja @xjsuccessful @xjcompany @xjthat @xjis @xjrapidly @xjexpanding, @xjfor @xjexample, @xjcapital @xjoutlays
@xjwill @xjbe @xjlarge, @ x j possibly @xjleading @xjto @xjnegative @xjcash @xjflow @xjfrom @xjassets. @xjIn @xjgeneral,
@xjwhat @xjmatters @xjis @xjwhether @xjthe @xjmoney @xjis @xjspent @xjwisely, @xjnot @xjwhether @xjcash @xjflow @xjfrom
@xjassets @xjis @xjpositive @xjor @xjnegative.
7. It’s @xjprobably @xjnot @xja @xjgood @xjsign @xjfor @xjan @xjestablished @xjcompany @xjto @xjhave @xjnegative @xjcash
@xjflow @xjfrom @xjoperations, @xjbut @xjit @xjwould @xjbe @xjfairly @xjordinary @xjfor @xja @xjstart-up, @xjso @xjit
@xjdepends.
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