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For Each of the Following Five Transactions,indicate by Letter Whether

question 111

Essay

For each of the following five transactions,indicate by letter whether the cash effect of each transaction is reported in a statement of cash flows as an operating (O),investing (I),financing (F),or noncash (NC)activity.
 type of Activity  Transaction  1. Issuance of common stock  2. Sale of land for cash 3. Purchase of treasury stock  4. Collection of an account receivable  5. Issuance of a note payable \begin{array}{ll}\text { type of Activity } & \text { Transaction } \\\hline & \text { 1. Issuance of common stock } \\&\text { 2. Sale of land for cash } \\& \text {3. Purchase of treasury stock } \\&\text { 4. Collection of an account receivable } \\&\text { 5. Issuance of a note payable }\end{array}

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Definitions:

Risk-Free Rate

The return on investment with no risk of financial loss, typically represented by the yield on government securities.

Market Risk Premium

The extra return investors demand for choosing to invest in the market over a risk-free asset.

Capital Structure Weights

The proportions of a firm's financing that come from different types of capital, such as equity, debt, and preferred stock, used to calculate the weighted average cost of capital (WACC).

Market Value

The now rate for transactions involving the purchase or sale of assets or services.

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