Which of the Following Factors Could Explain Why Regal Industrial

question 48

Multiple Choice

Which of the following factors could explain why Regal Industrial Fixtures had a negative net cash flow last year,even though the cash on its balance sheet increased?

• A) The company repurchased 20% of its common stock.
• B) The company sold a new issue of bonds.
• C) The company made a large investment in new plant and equipment.
• D) The company paid a large dividend.
• E) The company had high amortization expenses.

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Definitions:

International Court of Justice

The principal judicial entity of the United Nations, tasked with settling legal disputes between states and giving advisory opinions on international legal issues.

Swedish Corporation

A company incorporated under the laws and regulations of Sweden, often characterized by specific corporate governance and tax structures.

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World Trade Organization, an international body that deals with the rules of trade between nations to ensure that trade flows as smoothly, predictably, and freely as possible.

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A panel established to resolve disagreements and disputes in a formal and legally recognized manner, often found in construction contracts or international trade agreements.