Issuing Additional Long-Term Debt of $5 Million and Buying New

question 8

Multiple Choice

Issuing additional long-term debt of $5 million and buying new long-term assets worth $5 million will result in a net cash flow of:

• A) $5 million.
• B) $10 million.
• C) Zero.
• D) $15 million.

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Per Unit Tax

A tax applied on a product based on a fixed amount per unit sold, impacting the supply curve by shifting it upward or to the left.

Monopolist

An individual or firm that is the sole provider of a particular product or service, possessing significant market power to determine prices and output levels.

Price Increase

The rise in the cost of goods or services over time, typically reflected in higher consumer prices.