At the Beginning of the Year,long-Term Debt of a Firm

question 65

Multiple Choice

At the beginning of the year,long-term debt of a firm is $270 and total debt is $340.At the end of the year,long-term debt is $290 and total debt is $390.The interest paid is $40.What is the amount of the cash flow to creditors?

• A)-$50
• B)-$20
• C)$20
• D)$50
• E)$60

Comprehend the various short-term financing options available to firms, including secured financing, compensating balances, and letters of credit.

Master the processes involved in compiling projected cash balance reports and their relevance to financial planning.

Analyze and calculate net cash inflows and outflows to determine borrowing needs based on firm policies.

Distinguish between restrictive and flexible financial policies and their implications on pricing and premium charges.

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