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When a Company Sells Its Own Common Stock, It Is

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Short Answer

When a company sells its own common stock, it is a(n) ____________________ activity on the statement of cash flows.


Definitions:

Earnings Rate

A measure of the profitability of a company or investment, typically expressed as a percentage.

Net Present Values

A method used in capital budgeting to analyze the profitability of an investment or project by calculating the present values of all cash inflows and outflows.

Useful Life

The estimated duration of time an asset is expected to be usable for its intended purpose.

Residual Value

The estimated value that an asset will have at the end of its useful life, after it has been depreciated.

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