In 2013, Plowback Accounted for Approximately ____ of Corporate Financing

question 174

Multiple Choice

In 2013, plowback accounted for approximately ____ of corporate financing while new stock sales accounted for approximately ____.

• A)$2 trillion; $384 billion 
• B)$65 billion; $1 trillion 
• C)$1 trillion; negative $65 billion 
• D)negative $65 billion; $1 trillion

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Definitions:

Marginal Revenue

The increased income derived from the sale of one extra unit of a good or service.

Marginal Cost

The change in total cost that arises when the quantity produced is incremented by one unit.

MC > MR

A condition where Marginal Cost (MC) is greater than Marginal Revenue (MR), suggesting that producing additional units of a good will not increase profits and may reduce them.

Profit

The financial gain realized when the revenue generated from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.