Which of the Following Is Not Classified Among the Financing

question 86

Multiple Choice

Which of the following is not classified among the financing activities in a statement of cash flows?

• A)Long-term borrowing.
• B)Payment of dividends to stockholders.
• C)Payment of interest to creditors.
• D)Short-term borrowing.

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Definitions:

Compounded

Refers to the process where the value of an investment grows exponentially over time as earnings or interest are reinvested to generate additional earnings.

Dividend Yield

A ratio indicating the amount of dividends a company distributes annually in relation to its share price.

Constant Growth Model

A model that estimates the value of a dividend-paying stock by assuming constant growth in dividends at a consistent rate.

Gordon Model

A financial model used to determine the value of a stock by considering the current dividend, the expected growth rate of dividends, and the required rate of return.