It is tax - deferred but unlike other 401 Ks and retirement plans, the contributions must be for the company's stock only, thus making them partial owners The company
receives more cash flow, tax savings, and more motivated employees since they are part owners, and most likely will be...
Not exact matches
The
cash method offers several advantages: it is simpler than the accrual method; it provides a
more accurate picture of
cash flow; and income is not subject to taxation until the money is actually
received.
«And doing that enabled us to better manage our
cash flow, and our resources, and our work schedules, and our efficiency because we were now doing
more work throughout the year and
receiving more payments throughout the year, instead of large lump sums at the same time of every year,» says Kendrick.
In other words, the rental revenue
received by National Retail has substantially fewer expenses and
more stable net
cash flow than other REITs with a smaller mix of triple - net leases.
(Corrected from initial posting — i.e. it costs
more to
receive a given
cash flow in the future than today, thus backwardation, not contango.)
This should make intuitive sense because the longer the period of time before a
cash flow is
received, the
more chance there is that the required discount rate (or yield) will move higher.
This should be intuitive if you think about a present value calculation — when you change the discount rate used on a stream of future
cash flows, the longer until a
cash flow is
received, the
more its present value is affected.
Also: i) $ 6 billion of investments — any volatility / illiquidity is
more than offset by $ 5 billion + of unrecorded revaluation gains, ii) $ 1.4 billion of Lenovo promissory notes due in October — their balance sheet /
cash flow suggest no reason to doubt this will be paid, and iii) a recently announced $ 0.8 billion for a non-controlling stake in Verily — the final tranche to be
received in H2 - 2017.
Positive
cash -
flow properties are the ones that have already a tenant paying rent when they are acquired, and the rental income
received is
more than enough to cover operating expenses, including property taxes and mortgage payments.
A
more full mathematical model for estimating the value of a property based on the expected
cash flows to be received over the holding period is the Discounted Cash Flow (DCF) model that estimates the present value of all cash flows of the property over its expected holding period taking into account all revenues and expenses, as well as the sales price and costs at the end of the holding per
cash flows to be
received over the holding period is the Discounted
Cash Flow (DCF) model that estimates the present value of all cash flows of the property over its expected holding period taking into account all revenues and expenses, as well as the sales price and costs at the end of the holding per
Cash Flow (DCF) model that estimates the present value of all
cash flows of the property over its expected holding period taking into account all revenues and expenses, as well as the sales price and costs at the end of the holding per
cash flows of the property over its expected holding period taking into account all revenues and expenses, as well as the sales price and costs at the end of the holding period.