Cash flow from operations (CFO),”NI + Depreciation + Decrease in Op. Asset Accounts – Increase in Op. Asset Accounts + Increase in Op. Liability Accounts (other than notes payable) – Decrease in Op. Liability Accounts.*Hint: you add the decrease in an operating asset account such as accounts receivable because if the AR decreases, that means customers have PAID for products (in other words

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“Bond Price Calculation – Varying Coupon PMT19. A company just issued a unique, 5-year bond with a face value of $1,000 that pays a coupon of $60 in year 1, $70 in year 2, $80 in year 3, $90 in year 4, $100 in year 5. The company also pays the face value of the bond at the end of year 5. If the yield to maturity is 8%, what is the price of this bond? (Assume coupons are paid annually)”

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