If 50,000 Shares Are Authorized, 41,000 Shares Are Issued, and 2,000

question 93

True/False

If 50,000 shares are authorized, 41,000 shares are issued, and 2,000 shares are reacquired, the number of outstanding shares is 43,000.

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Definitions:

Free Cash Flows

The amount of cash a company generates after accounting for capital expenditures needed to maintain or expand its asset base.

Cash Flow Approach

A financial analysis method that focuses on the company's cash inflows and outflows, rather than its net income.

Market-To-Book Ratio

A financial ratio used to compare a company's current market price to its book value, providing insight into the value the market places on a company’s equity.

Return On Equity

A financial ratio that measures the profitability of a corporation in relation to stockholders' equity, indicating how well the company uses investments to generate earnings growth.