Match These Terms with Their Correct Definition

question 36

Multiple Choice

Match these terms with their correct definition.
-Provides information that can be used to judge a company's ability to meet its obligations and pay dividends.

• A)Cash flow adequacy ratio
• B)Cash flows from financing activities
• C)Cash flows from investing activities
• D)Cash flow from operating activities
• E)Direct method
• F)Free cash flow
• G)Income statement
• H)Indirect method
• I)Noncash investing & financing activities
• J)Statement of cash flows

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Definitions:

IPOs

Initial Public Offerings, a process where a private company offers shares to the public in a new stock issuance to raise capital.

First Day Returns

The percentage change in the price of a stock from its initial public offering price to its closing price on the first day of trading on the public market.

Unseasoned Rights Offering

A capital-raising activity in which companies offer new shares to existing shareholders without a prior track record of such market actions.

Public Offering

The process of selling new issues of securities to the public, typically through the issuance of stocks or bonds.