A Firm Paid Out a Dividend of $700,000 and Repaid

question 55

Multiple Choice

A firm paid out a dividend of $700,000 and repaid $1,000,000 notes payable.The net effect of these transactions on the firm's net working capital is a decrease of:

• A) $1,700,000.
• B) $1,000,000.
• C) $700,000.
• D) $300,000.

Understand the fiduciary duties of the board of directors towards the company and its stakeholders.

Recognize the importance of an organization’s reputation as an intangible asset with tangible value.

Understand the chemical and physical processes of rock weathering.

Identify factors influencing the rate and type of weathering.

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Definitions:

Treynor Measure

A performance metric for determining how well the returns of an investment compensate the investor for taking a risk, adjusting for market volatility.

S&P 500 Index

A market-capitalization-weighted index of the 500 largest U.S. publicly traded companies and is considered one of the best representations of the U.S. stock market.

Sharpe Measure

A metric for calculating risk-adjusted return, measuring excess return per unit of deviation in an investment.

S&P 500 Index

A stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States, often used as a gauge of the overall health of the US stock market.