Suppose That a fiRm Paid Dividends of $300 and Interest

question 98

Multiple Choice

Suppose that a firm paid dividends of $300 and interest of $611. In addition, the firm raised cash by selling new debt of $400 and new equity of $911. What is the firm's cash flow to creditors?

• A) -$1,040
• B) -$240
• C) $211
• D) $890
• E) $1,040

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Definitions:

Infrastructure

The fundamental physical and organizational structures and facilities needed for the operation of a society or enterprise.

Loans

Borrowed funds that must be repaid, usually with interest, used by individuals or entities to finance various activities or purchases.

Economic Growth

refers to an increase in the production of economic goods and services, compared from one period of time to another, typically measured by GDP.

DVCs

Digital Video Cameras, which are devices used to capture video in a digital format. If not related to digital video cameras, DVCs could be referring to a term not recognized without further context.