Which of the Following Is a Cash Outflow from Financing

question 23

Multiple Choice

Which of the following is a cash outflow from financing activities?

• A) Payments for taxes
• B) Purchase of debt or equity
• C) Purchase of plant, property, and equipment
• D) Payments to employees
• E) Payment of dividends

Calculate net cash provided by (used in) investing activities.

Calculate net cash provided by (used in) financing activities.

Interpret the impact of transactions on the statement of cash flows.

Determine free cash flow from given financial data.

---

Definitions:

Flotation Costs

Flotation costs refer to the expenses incurred by a company in issuing new securities, including fees for underwriting, legal counsel, and registration.

Public Offerings

The act of selling stocks or bonds to the public for the first time.

Debt Refunding

The process of replacing old debt with new debt, often to take advantage of more favorable borrowing terms or interest rates.

NPV

Net Present Value; a financial metric used to evaluate the profitability of an investment, calculating the difference between the present value of cash inflows and outflows over a period of time.