An Alternate Way to Pay Investors Is When the Firm

question 14

Multiple Choice

An alternate way to pay investors is when the firm uses cash to buy its own shares, also known a?

• A) retained earnings.
• B) dividend investment.
• C) initial public offering.
• D) share repurchases.

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Definitions:

Break-even Quantity

The volume of sales at which total revenues equal total costs, resulting in neither profit nor loss.

Fixed Costs

Expenses that do not vary with the level of production or business activity, including rent, salaries, and insurance premiums.

Marginal Costs

The change in total cost that arises from producing one additional unit of a product or service.

Break Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain for the business.