If Morris Corporation Has a Negative $131 Million Free Cash

question 59

Multiple Choice

If Morris Corporation has a negative $131 million free cash flow, which of the following statements is most likely true?

• A)Morris' capital expenditures plus cash dividends is less than its cash provided by operations.
• B)This free cash flow indicates that Morris will be able to repay its long-term obligations when they come due.
• C)This free cash flow indicates that Morris has ability to retire its stock.
• D)Morris' cash provided by operations is less than its cash dividends plus capital expenditures.

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Definitions:

Cascade Effect

A process where one event precipitates a series of subsequent events, often amplifying the initial triggering condition.

Protein Kinase

An enzyme that modifies other proteins by chemically adding phosphate groups to them, impacting their activity.

Calmodulin

Protein receptor for Ca2+ that plays a role in many Ca2+-regulated processes, such as smooth muscle contraction.

Steroid Hormones

Lipid-soluble molecules derived from cholesterol that regulate a variety of physiological functions including metabolism, inflammation, and sexual function.