All of the Following Would Be Included in a Company's

question 110

Multiple Choice

All of the following would be included in a company's investing activities except

• A)taking out a loan from the bank.
• B)purchase of equipment.
• C)sale of another company's stock.
• D)making loans to another company.
• E)sale of a building.

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Definitions:

Dividend Clienteles

Groups of investors who prefer stocks of companies with a specific dividend policy that matches their income needs and tax situations.

Cyclical Dividend Policy

A dividend policy where the dividend payout is linked to the company's earnings or economic cycles.

Special Dividend Payments

One-time payments made by a company to shareholders, often signaling strong financial health or the distribution of extraordinary profits.

Target Debt/Equity Ratio

A firm's optimal mix of debt and equity financing aimed at minimizing its cost of capital and maximizing valuation.