In Contrast to Managers' Desires, Shareholders Usually Prefer That Free

question 100

Multiple Choice

In contrast to managers' desires, shareholders usually prefer that free cash flows be:

• A) used to diversify the firm.
• B) returned to them as dividends.
• C) used to reduce corporate debt.
• D) re-invested in additional corporate assets.

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Definitions:

Amino Acids

Organic compounds that combine to form proteins and are used by the body for various functions including tissue repair and the synthesis of neurotransmitters.

Fatty Acids

Organic compounds made of long hydrocarbon chains ending in a carboxylic acid group, essential in diet and biology for energy storage and cell membrane structure.

Peptide

Short chain of amino acids linked by peptide bonds.