Following the Borrowing of $12 and Subsequent Share Repurchase,the Number

question 97

Multiple Choice

Following the borrowing of $12 and subsequent share repurchase,the number of shares that RC will have outstanding is closest to:

• A) 4.0 million
• B) 6.0 million
• C) 4.9 million
• D) 4.5 million

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Definitions:

Account Payable

Obligations or debts a company owes to suppliers or creditors for goods or services received that have not yet been paid for.

Increases Liabilities

Situations or transactions that result in a rise in the claims against a company’s assets.

Decreases Assets

Refers to any operation or transaction that results in a reduction of the value of assets owned by a business.

Account Receivable

Money owed to a company by customers who have purchased goods or services on credit.