10. Analysts who follow Howe Industries recently noted that relative to the previous year, the company's net cash provided from operations increased, yet has reported on the balance sheet decreased. Which the following factors could explain this situation The company cut its dividend The company made large investments is fixed The company solda division and received cash in The company is now common seck The company issued new long-term debit 1. Austin Financial recently announced that is stee cash provided from operations declined which of the The company's dividend payment me thods d in harply from the p o wy d epthis performance The companie deel The cyclopedia y's deprecate d ecine The company's most expenced 12. Which of the following statements CORRECT The statement of cash flows forts cash flows from person, but it does not reflect the effects of buying or selling fired The statement of cash flowers where the f l ow indeed provides a listing of all thanks and brokerage houses were cashion deposit The statement of cash flows reflects cash flows from coming operations, but it does not eflect the effects of changes in working capital The statement of cash flows reflects cash flows from operations and from borrowings, but it es not reflect cash and by scienc e The statement of cash flows shows how much the firm's cash-the total of currency bank deposits, and short-term quidecurs for cashqa ncreased or decreased during 13. Which of the following is NOT a potential problem when estimating and using betas, ie, which statement i FALSE The fact that a security of project may not have a past y that can be used as the basis for Il Lalculating beta Sometimes, during a period when the co a changeschatowand more average or assets, the calculated will be different from there respected f ebeta The bea of an average stockor the market and sometimes drastically Sometimes the past data used to calculated the risk of the firm for the because conditions have changed ul t er. This calculated historical bas c from the beta that is in the 14. Which of the following statements CORRECT The hea of a portfolio of stocks is w h en thehetas of any of the individual cs Nr you found a stack with a hical handheld as the only stock in your portfolio you would by definition have a riskless portfolio The hot cocfficient of stock i m ally found by past returns on a stock against past market returns. One could be contar d am of returns on the stock versus hoe on the market estimate the slope of the line of best fit and use it as beta However, this historical heta may differ from the beta that the The beta of a portfolio of stocks is always larger than the base any of the individual stocks is theoretically possible for a stock to have a bit of Lolfa stock did have a beta of 10 Then, at least in theory, its required rate of return would be equal to the risk-free default free w of retur, RF
