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Cash flow to stockholders is characterized as:

A) The total amount of interest and dividends phelp throughout the past year.

You are watching: The higher the degree of financial leverage employed by a firm, the:

B) The adjust in full equity over the previous year.

C)Cash flow from assets plus the cash flow to creditors.

D) Operating cash circulation minus the cash flow to creditors.

E) Dividfinish payments less net brand-new equity raised.


Ernie’s Home Repair had actually beginning long-term debt of $51,207 and finishing long-term debt of $36,714. The beginning and ending total debt balances were $59,513 and also $42,612, respectively. The interest passist was $2,808. What is the amount of the cash circulation to creditors?

A) -$11,685

B) -$11,272

C) 17,301

D) $17,418

E) $11,174


Which one of the following represents the many liquid asset?

A) $100 account receivable that is discounted and also accumulated for $96 now.

B) $100 of inventory which is marketed this day on crmodify for $103.

C) $100 of inventory which is discounted and offered for $97 cash this day.

D) $100 of inventory that is sold today for $100 cash.

E) $100 accounts receivable that will certainly be accumulated in complete next week.


A positive cash circulation to stockholders indicates which among the following with certainty?

A) The dividends phelp surpassed the net brand-new equity elevated.

B) The amount of the sale of widespread stock exceeded the amount of dividends passist.

C) No dividends were distributed, yet brand-new shares of stock were marketed.

D) Both the cash flow to assets and the cash circulation to creditors need to be negative.

E) Both the cash circulation to assets and also the cash flow to creditors have to be positive.


The better the level of financial leverage employed by a firm is, the:

A) Higher is the probcapability that the firm will certainly enrespond to financial distress.

B) Lower is the amount of debt incurred.

C) Less debt a firm has actually per dollar of full assets.

D) Higher is the variety of superior shares of stock.

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E) Lower is the balance in accounts payable.


At the beginning of the year, a firm had actually present assets of $121,306 and also current liabilities of $124,509. At the end of the year, the current assets were $122,418 and also the current liabilities were $103,718. What is the adjust in net functioning capital?

A) -$19,679

B) -$11,503

C) -$9,387

D) $1,809

E) $21,903


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