The Lory Bookstore Used Internal Financing as a Source of Long-Term

question 37

Multiple Choice

The Lory Bookstore used internal financing as a source of long-term financing for 85% of its total needs in 2014. The company borrowed an additional 25% of its total needs in the long-term debt markets in 2014. What were Lory's net new stock issues in that year?

• A) -20%
• B) -10%
• C) 10%
• D) 20%
• E) 30%

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Definitions:

Free Riding

The behavior of individuals who benefit from resources, goods, or services without contributing to the cost or effort involved in providing them.

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Pertaining to actions or policies that actively encourage or facilitate the improvement or advancement of something.

Cooperation

involves individuals or groups working together towards a common goal, often characterized by mutual benefits and shared responsibilities.