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Cash flow to shareholder is characterized as:

A) The complete amount the interest and dividends paid during the past year.

You are watching: The higher the degree of financial leverage employed by a firm is, the:

B) The adjust in full equity over the past year.

C)Cash circulation from assets to add the cash flow to creditors.

D) operation cash circulation minus the cash flow to creditors.

E) Dividend payments less net new equity raised.


Ernie’s home Repair had start long-term debt of $51,207 and also ending long-term debt of $36,714. The beginning and ending complete debt balances to be $59,513 and also $42,612, respectively. The interest paid to be $2,808. What is the lot of the cash circulation to creditors?

A) -$11,685

B) -$11,272

C) 17,301

D) $17,418

E) $11,174


Which one of the following represents the most liquid asset?

A) $100 account receivable the is discounted and accumulated for $96 today.

B) $100 that inventory i m sorry is sold today on credit transaction for $103.

C) $100 the inventory i m sorry is discounted and also sold because that $97 cash today.

D) $100 the inventory that is offered today because that $100 cash.

E) $100 accounts receivable that will be built up in full next week.


A hopeful cash circulation to stockholders shows which among the complying with with certainty?

A) The dividends paid gone beyond the net brand-new equity raised.

B) The amount of the revenue of usual stock gone beyond the lot of dividend paid.

C) No dividends were distributed, but new shares that stock were sold.

D) Both the cash flow to assets and also the cash circulation to creditors need to be negative.

E) Both the cash flow to assets and the cash flow to creditors have to be positive.


The higher the degree of jae won leverage to work by a certain is, the:

A) greater is the probability the the firm will certainly encounter jae won distress.

B) lower is the quantity of debt incurred.

C) less debt a firm has per dollar of full assets.

D) higher is the number of outstanding shares of stock.

See more: The ____ Cell On The Worksheet Is The One Into Which You Can Enter Data.

E) reduced is the balance in accounts payable.


in ~ the start of the year, a for sure had current assets of $121,306 and also current liabilities of $124,509. At the finish of the year, the existing assets to be $122,418 and the present liabilities were $103,718. What is the adjust in net functioning capital?

A) -$19,679

B) -$11,503

C) -$9,387

D) $1,809

E) $21,903


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