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Use the information for the question(s) below.
Omicron Industries' Market Value Balance Sheet ($ Millions)
and Cost of Capital Omicron Industries' New Project Free Cash Flows (Millions)
Assume that this new project is of average risk for Omicron and that the firm wants to hold constant its debt to equity ratio.
-The debt capacity for Omicron's new project in year 2 is closest to:
Financing Activities
Financing activities are transactions between a company and its creditors or investors, including issuing equity, borrowing money, and repaying loans, reflected in the cash flows statement.
Cash Flow
The aggregate sum of funds moving in and out of a company, particularly influencing its liquidity.
Common Stock
Equity security that represents ownership in a corporation, entitling the owner to vote at shareholders' meetings and to receive dividends.
Cash Collected
The amount of money received by a company during a specific period from all sources, including sales, investments, financing, etc.
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