Which One of the Following Is the Definition of Investment

question 84

Multiple Choice

Which one of the following is the definition of investment cash flow?

• A) revenue minus expenses
• B) cash flow from the purchases and sales of fixed assets and investments
• C) cash flow originating from the issuance of securities
• D) cash generated by a firm's normal business activities
• E) pre-tax income

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Definitions:

Stock Split

A corporate action where a company divides its existing shares into multiple new shares to boost the liquidity of the shares, though the overall value of the company remains unchanged.

Market Value

The existing rate at which an asset or service is being offered for buying or selling in the marketplace.

Debt-Equity Ratio

A measure of a company's financial leverage, calculated by dividing its total liabilities by shareholder equity.

Residual Dividend Policy

A strategy where companies pay dividends from the remaining earnings after all operational and growth expenses are covered.