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Which of the following actions are most likely to directly increase cash as shown on a firms balance sheet? Explain

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Which of the following actions are most likely to directly increase cash as shown on a firm’s balance sheet? Explain and state the assumptions that underlie your answer.
a. It issues $4 million of new common stock.
b. It buys new plant and equipment at a cost of $3 million.
c. It reports a large loss for the year.
d. It increases the dividends paid on its common stock.

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Statements b and d will decrease the amount of cash on a companys balance …View the full answer


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Related Book For  answer-question
Fundamentals of Financial Management

Fundamentals of Financial Management

ISBN: 978-1305635937

Concise 9th Edition

Authors: Eugene F. Brigham

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Question Details
Chapter # 3
Section: Exercise Questions
Problem: 10
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Question Posted: April 06, 2018 01:45:43
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