Which One of These Would Not Be Paid from Free

question 88

Multiple Choice

Which one of these would not be paid from free cash flow?

• A) Cash dividends
• B) Repayment of principal on a long-term debt
• C) Repurchase of outstanding shares of common stock
• D) New equipment purchase

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Definitions:

Indeterminate

A situation or outcome that is not clearly defined or decided, often because of complex or uncertain variables.

Marginal Utility

The additional satisfaction or utility that one receives from consuming one more unit of a good or service.

Donut

A fried dough confection or dessert food, usually ring-shaped or without a hole and filled with various sweet fillings or toppings.

Total Utility

The total satisfaction or benefit received from consuming a particular quantity of a good or service.