Question 6: Assume you are a credit manager in charge of approving commercial loans to business...

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Question 6: Assume you are a credit manager in charge ofapproving commercial loans to business firms. Identify threeaspects of a firm's cash flows you would review and explain thetype of information you hope to gain from reviewing each of thosefive aspects. Question 7: Give some examples of ways in whichmanager's goals can differ from those of shareholders. Question 8:Describe the major differences between individual and institutionalinvestors.

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Question 6 The five aspects of cash flows are the information obtained is Operating cash flow How much cash flow is a firm generating from its operations Cash flow to creditors Is the firm paying back its creditors and what additional debt it has been raising Cash flow to stockholders Is the company paying dividends to the shareholders and are these shareholders investing further capital to the firm Net working capital Is the firm increasing its networking capital or decreasing it and does it affect the firms liquidity Net    See Answer
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Question 6: Assume you are a credit manager in charge ofapproving commercial loans to business firms. Identify threeaspects of a firm's cash flows you would review and explain thetype of information you hope to gain from reviewing each of thosefive aspects. Question 7: Give some examples of ways in whichmanager's goals can differ from those of shareholders. Question 8:Describe the major differences between individual and institutionalinvestors.

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