Generally, Managers of Corporations Prefer Internally Generated Cash to Finance

question 35

Multiple Choice

Generally, managers of corporations prefer internally generated cash to finance their capital expenditures because
I.they can avoid the discipline of financial markets;
II.the costs of issuing new securities are high;
III.the announcement of a new equity issue is usually bad news for investors

• A)I only
• B)II only
• C)II and III only
• D)I, II, and III

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Definitions:

Cause and Effect

A relationship where one event (the cause) directly leads to the occurrence of another event (the effect).

Real Objects

In psychoanalytic theory, refers to tangible, physical objects as opposed to imagined or conceptual ones.

Reasoning

The method of using reason and logic to examine something to make a decision or verdict.

Dynamic Systems

Dynamic systems are systems characterized by constant change, activity, or progress, where interactions and relationships within the system can lead to varying outcomes over time.