Which of the Following Financing Activities Results in a Cash

question 167

Multiple Choice

Which of the following financing activities results in a cash inflow?

• A)Buying treasury stock
• B)Issuing bonds
• C)Repaying a bank loan
• D)Paying cash dividends

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Definitions:

Composite Risk Rating

A comprehensive evaluation of the risk level of a portfolio by considering various risk factors and metrics to assign an overall rating.

Present Exchange Rate

The current rate at which one currency can be exchanged for another in the foreign exchange market.

U.K. Bills

Short-term debt instruments issued by the United Kingdom government to finance its operations.

Risk-Free Rate

A concept describing the return investors expect to earn from an absolutely risk-free investment over a certain period of time, typically associated with government bonds.