In Contrast to Managers' Desires, Shareholders Usually Prefer That Free

question 100

Multiple Choice

In contrast to managers' desires, shareholders usually prefer that free cash flows be:

• A) used to diversify the firm.
• B) returned to them as dividends.
• C) used to reduce corporate debt.
• D) re-invested in additional corporate assets.

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Definitions:

Allergy

An immune system reaction to a foreign substance that is not typically harmful to the body.

Adhesive

A substance used for sticking objects or materials together; commonly referred to as glue.

Vacuum Tube

An electronic device used to control the flow of electricity in a vacuum, commonly used in early electronics such as radios and televisions.

Hematoma

A tumor or swelling that contains blood.