Which of the Following Activities Result in an Increase in a Firm's

question 120

Multiple Choice

Which of the following activities result in an increase in a firm's cash?

• A) decrease fixed assets
• B) decrease accounts payable
• C) pay dividends
• D) repurchase of common stock

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Definitions:

Supernormal Rate

Typically refers to an above-average rate of return on investment or growth.

Normal Rate

A standard or typical rate often used in finance or economics, which can refer to interest rates, growth rates, or other measures.

Implied Constant Growth

A growth rate inferred from the dividend discount model, assuming dividends grow at a constant rate indefinitely.

Market Return

The total return on an investment over a specified period, including dividends, interest, and capital gains, as measured by the change in the market price.