1- Identify the true statement regarding dividends.

Multiple choice question.

-An increase in cash dividends indicates that management expects future operating cash flows to decrease.

-Like interest expense, dividends are tax deductible

-The payment of cash dividends indicates that management expects future operating cash flows to be favorable.

2- Companies present cash flows related to expansion of fixed assets and cash flows related to nonoperating investments in the cash flow from _________ activities section of the statement of cash flows.

3- A company is in ____________ when it fails to make a required loan payment on time.

4- One way to determine credit risk using many variables simultaneously is called the

Multiple choice question.

- Altman Z-score.

- Bankruptcy Z-score.

- S&P Z-score.