Question

In: Finance

​Other things held constant, which of the following actions would increase the amount of cash on...

​Other things held constant, which of the following actions would increase the amount of cash on a company's balance sheet?

Question 11 options:

​The company declares a stock split.

​The company cuts its dividend.

​The company repurchases common stock.

​The company purchases a new piece of equipment.

​The company gives customers more time to pay their bills.

Solutions

Expert Solution

If the company cuts the dividend paid, then that action will increase the cash in the balance sheet. If the company purchases a new piece of equipment then that reduces the cash. If the company gives customers more time to pay their bills then this action also reduces the cash inflow in the balance sheet. If a company repurchases common stock, this results in cash outflow. Stock split does not affect the cash balance on the balance sheet.

So, the correct option is option B.

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

Other things held constant, which of the following actions would increase the amount of cash on...
Other things held constant, which of the following actions would increase the amount of cash on a company's balance sheet? a. The company repurchases common stock. b. The company purchases a new piece of equipment. c. The company issues new common stock. d. The company gives customers more time to pay their bills. e. The company pays a dividend.
Other things held constant, which of the following alternatives would increase a company's cash flow for...
Other things held constant, which of the following alternatives would increase a company's cash flow for the current year? a. Increase the days' sales outstanding (DSO) without reducing sales b. Purchase new equipment c. Decrease the accounts payable balance d. Increase the inventory turnover ratio without affecting sales e. Decrease the accrued wages balance ____    2.   You observe that a firm's ROE is above the industry average, but its profit margin and debt ratio are both below the industry average....
Question 1) All else held constant, which of the following actions would increase the amount of...
Question 1) All else held constant, which of the following actions would increase the amount of cash on a company’s balance sheet? a) The company buys new equipment on credit terms. b) The company gives customers less time to pay their bills. c) The company repurchases common stock. d) The company pays a dividend. e) None of the above. Question 2) Which of the following items is not normally considered to be a current asset or current liability? a) Accounts...
Other things held constant, which of the following will affect the current ratio, assuming an initial...
Other things held constant, which of the following will affect the current ratio, assuming an initial current ratio greater than 1.0? Fixed assets are sold for cash. Long-term debt is issued to pay off current liabilities. Accounts receivable increases. Cash is used to pay off accounts payable. A bank loan is obtained, and the proceeds are credited to the firm's checking account. all of the above none of the above
Which of the following statements is CORRECT? Other things held constant, the less debt a firm...
Which of the following statements is CORRECT? Other things held constant, the less debt a firm uses, the lower its return on total assets will be. The advantage of the basic earning power ratio (BEP) over the return on total assets for judging a company's operating efficiency is that the BEP does not reflect the effects of debt and taxes. The return on common equity (ROE) is generally regarded as being less significant, from a stockholder's viewpoint, than the return...
Other things held constant, an increase in financial leveragewill decrease a for-profit business’s market risk...
Other things held constant, an increase in financial leverage will decrease a for-profit business’s market risk as measured by its beta coefficient.TrueFalse
Other things held constant, if a firm holds cash balances in excess of their optimal level...
Other things held constant, if a firm holds cash balances in excess of their optimal level in a non-interest bearing account, this will tend to lower the forms? What is the future value of a 5 year annuity with annual payments of $200, evaluated at a 15% interest rate?
Everything else held constant, will an increase in the amount of inventory on hand increase or...
Everything else held constant, will an increase in the amount of inventory on hand increase or decrease the firm’s profitability? at least 250 words
Other things held constant, What is the relationship between the time to maturity and interest rate...
Other things held constant, What is the relationship between the time to maturity and interest rate sensitivity of bonds? explain bonds with higher and lower maturity pros and cons
Which of the following, other things the same, would make the price level decrease and real GDP increase?
Which of the following, other things the same, would make the price level decrease and real GDP increase? a. long-run aggregate supply shifts right b. aggregate demand shifts left c. aggregate demand shifts right d. long-run aggregate supply shifts left
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT