A Company Wants to Maintain Its Current Debt\equity Ratio

question 76

Multiple Choice

A company wants to maintain its current debt\equity ratio.Which of the following relationships would most likely occur on the cash flow statement?

• A)Cash from operations would be equal to any debt paid off during the year.
• B)Cash from operations would be equal to cash from financing activities for the year.
• C)New borrowings would replace any debt paid off.
• D)New borrowings would be less than cash from operations for the year.

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Definitions:

Industry Growth

The increase in production, sales, and the number of companies in a specific sector over time, indicating economic expansion and market potential.

Geographic Scope

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Value Chain Activities

The range of activities that a business performs to deliver a valuable product or service to its customers, including both primary and support activities.

Available Technology

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