In Contrast to Managers' Desires, Shareholders Usually Prefer That Free

question 100

Multiple Choice

In contrast to managers' desires, shareholders usually prefer that free cash flows be:

• A) used to diversify the firm.
• B) returned to them as dividends.
• C) used to reduce corporate debt.
• D) re-invested in additional corporate assets.

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Definitions:

Discrete Random Variable

A variable that takes on a countable number of distinct values, often resulting from counting processes.

With Replacement

In sampling, "with replacement" means that once an item is selected, it's put back into the population before the next selection, making it possible to be chosen again.

Sampling Without Replacement

A method of sampling where once an individual is selected, they are not placed back into the population for the possibility of a second selection.

Hypergeometric Distribution

A probability distribution used to calculate probabilities for drawing successes without replacement from a finite population.