Question: For a firm to create value it must: create more cash flow than it uses. avoid the issuance of debt securities. reduce its investment in

For a firm to create value it must:

create more cash flow than it uses.

avoid the issuance of debt securities.

reduce its investment in fixed assets since fixed assets require the use of cash.

avoid payments to the government so dividends can be increased.

have a greater cash inflow from its stockholders than its outflow to them.

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