26. All of the following represent cash outflows to the firm except a.Taxes. b.Interest payments. c.Dividends. d.Purchase of plant and equipment. e.Depreciation
26. All of the following represent
a.Taxes.
b.Interest payments.
c.Dividends.
d.Purchase of plant and equipment.
e.Depreciation
27. Other things held constant, if a firm holds cash balances in excess of their optimal level in a noninterest-bearing account, this will tend to lower the firm's
a.Operating profit margin.
b.Total asset turnover.
c.Return on equity.
d.All of the above.
e.Answers b and c above.
28. Other things held constant, which of the following will not affect the current ratio, assuming an
initial current ratio greater than 1.0?
a.Fixed assets are sold for cash.
b.Long-term debt is issued to pay off current liabilities.
c.Accounts receivable are collected.
d.Cash is used to pay off accounts payable.
e.A bank loan is obtained, and the proceeds are credited to the firm's checking account.
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