Which of the Following Situations Is a Potential Source of Cash

question 40

Multiple Choice

Which of the following situations is a potential source of cash flows for shareholders? I. The investor may be able to sell the shares at a future date.
II. The firm in which the shares are held might pay out cash to shareholders in the form of dividends.
III. The firm in which the shares are held might increase the value of its shares by reducing the total number of shares outstanding.

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

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