Hi... I have two questions...
Can you confirm the answers are d & c? This quiz has already been completed...
I will then have some concept follow up questions.
Which of the following is a use of cash?
a. An increase in short-term loans
b. An increase in accounts payable
c. The sale of fixed assets
d. Dividends paid
e. None of the above
I'm having serious problems understanding the "use of cash/source of cash" concepts.
Which of the following would decrease the financial leverage of a firm?
a. Total assets increase and the debt to equity ratio remains constant.
b. Total debt increases and total assets remain constant.
c. Net new equity is sold and existing bonds are paid off.
d. Net new bonds are sold and outstanding common stock is repurchased.
e. Net new bonds are sold and short-term notes payable are paid off
Thanks for your help!