Which of the Following BEST Demonstrates Cash Flow from Operations

question 100

Multiple Choice

Which of the following BEST demonstrates cash flow from operations?

• A) Transactions involved in buying and selling goods and services
• B) Net cash used in or provided by investment
• C) Cash flow from borrowing or issuing stock
• D) Outflows for payments of dividends
• E) Inflows of cash that will be used to repay borrowed money

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Definitions:

Expected Capital Gains Yield

The anticipated return from an increase in the price of an investment, not including dividends or interest.

Constant

A fixed value that does not change in mathematical expressions or in the formulation of algorithms and calculations.

Expected Dividend

The projected payment a company is expected to distribute to its shareholders from its earnings.

Market Risk Premium

The market risk premium is the additional return an investor expects from holding a risky market portfolio instead of risk-free assets.