On the Statement of Cash Flows,a Hybrid Financial Instrument Should

question 50

Multiple Choice

On the statement of cash flows,a hybrid financial instrument should be:

• A) Reported as an operating activity
• B) Reported as a financial activity
• C) Reported as an investing activity
• D) Reported according to its individual components

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Definitions:

Dividends Increase

An action by a company to raise the amount of money distributed to shareholders from its net income over a period.

Returns on The Stock

The income earned from an investment in stocks, including dividends and capital gains.

Dividend of $2.90

A specified amount of $2.90 paid to shareholders, typically on a per share basis, out of the company's earnings.

Required Return

The minimum return an investor expects to achieve by investing in a particular asset, considering its risk.