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Which of the following actions will, all else equal, increase the amount of cash on a company's balance sheet? a. The company issues $2 million in new common stock. b. The company invests $3 million in new plant and equipment.

Which of the following actions will, all else equal, increase the amount of cash on a company's balance sheet?
a. The company issues $2 million in new common stock.
b. The company invests $3 million in new plant and equipment.
c. The company generates negative net income and negative net cash flow during the year.
d. The company increases the dividend paid on its common stock.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...

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Fundamentals of Financial Management

Fundamentals of Financial Management

ISBN: 978-0324272055

10th edition

Authors: Eugene F. Brigham, Joel F. Houston

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Posted Date: September 06, 2016 09:07:05
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