Which of the Following Best Represents Cash Flows to Investors

question 6

Multiple Choice

Which of the following best represents cash flows to investors?

• A) Cash flow from operating activity, plus cash flow generated from net working capital
• B) Earnings before interest and taxes times 1 minus the firm's tax rate
• C) Net income minus dividends paid to preferred stockholders.
• D) Cash flow from operating activity minus cash flow invested in net working capital minus cash flow invested in long-term assets.

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Definitions:

Single Country

Pertains to investments or activities that are focused exclusively within one country's borders.

Triangle Arbitrage

Triangle arbitrage involves exploiting an arbitrage opportunity resulting from a pricing discrepancy among three different currencies in the foreign exchange market.

Canadian Dollar

The official currency of Canada, represented by the symbol C$ or CAD, and is one of the world's major currencies traded in financial markets.

Currencies

Currencies are the system of money in general use in a particular country, region, or economic area, facilitating the exchange of goods and services.