A company issues $2.6 million of new stock and pays $351,000 in cash dividends during the year.

Question:

A company issues $2.6 million of new stock and pays $351,000 in cash dividends during the year. In addition, the company took advantage of falling interest rates to borrow $1.66 million in a new bond Issue and paid off existing bonds with a face value of $2.90 million. The company bought 516 of another company's $1:160 bonds at a $116.000 premium. The net cash flow provided by financing activities Is:

O An outflow of $116,000.

O An inflow of $1.109.000.

O An outflow of $351,000.

O An inflow of $1140.000.

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...