Financing activities do not include cash outflows to O stockholders to repurchase common stock. lenders to pay off long-term debt. make loans to other entities. O stockholders as dividends.
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- The difference between equity financing and debt financing is that A. equity financing involves borrowing money. B. equity financing involves selling part of the company. C. debt financing involves selling part of the company. D. debt financing means the company has no debt.How do creditors assess risk when lending funds to a company?The difference between equity financing and debt financing is that Group of answer choices A. equity financing involves borrowing money. B. debt financing involves selling part of the company. C. debt financing means the company has no debt. D. equity financing involves selling part of the company.
- Which of the following actions would improve a firm's liquidity? a. Selling shares and reducing accounts payable. b. Buying bonds. c. Selling bonds and increasing cash. d. Both Selling bonds and increasing cash and Selling shares and reducing accounts payable.The difference between equity financing and debt financing is that a. equity financing involves borrowing money. b. debt financing means the company has no debt. c. equity financing involves selling part of the company. d. debt financing involves selling part of the company.If Firm A's business is to obtain savings from individuals and then invest them in financial assets issued by other firms or individuals, Firm A is a financial intermediary.a.Trueb.False
- Identify the term being referred to: A theory that states that how high or low an entity pays out dividends does not affect the decisions of investors. *Which of the statements are not correct Select one: a. Profits refers to earnings before Interest and Taxes b. Investment decisions relate to pattern of financing c. Dividend pay out ratio refers to what proportion is paid to shareholders d. Borrowed funds are relatively cheaper than shareholders’ fundsWhat is the main source or dividends ror MIPS (QUIPS) owner? I ) interest payments by parent company for credit or it's coupon payments for bonds; 2)par value of bond or credit 3) attracted additional funds 4) investor receives no dividends
- The investment banks collect money from public, because O a. Business sells products. O b. Business issues shares and debentures. O C. Business wants to make profits. O d. Banks issue shares and debentures.Explain how the Du Pont system of analysis breaks down return on assets. Also explain how it breaks down return on stockholders’ equity.If the stock market is efficient, why do companies manage their earnings? O To avoid violating debt covenants. O To receive bonuses based on reported earnings. O Because companies do not believe the Efficient Market Hypothesis. O All of the above.