13. Select the CORRECT item. Dividends paid reduce the net income that is reported on a company's income statement. If a company issues new long-term bonds to purchase fixed assets during the current a. year, this will ncrease both its reported current assets and current liabilities at the end of the year mpany pays more in dividends than it generates in net income, its retained earnings as reported on the balance sheet will decline from the previous year's bala A firm's shareholder and bondholder interests are always harmonious. nce. d. rprises makes a large capital investment to upgrade its technology. The investment is expected to depress current period Net Income, but substantially reduce future costs and risk Based on this, you conclude: Short-term earnings per share will decline, as will the price-to-earnings ratio. Short-term earnings per share will decline, but the price-to-earnings ratio is likely to increase Edmund's future EVA will likely decline because of increases in Total Invested Capital and weighted average cost of capital. c. d.Edmund's MVA will likely decrease. e. Edmund's return on equity will increase in the short term. million shares of common stock outstanding that sell for $22 a share. If the 9 million of common equity on its balance sheet, what is the company's Market 15. Alhambra Toys has 2 company has $4 Value Added (MVA)? Answer options are provided in whole dollar. -5,000,000 a. b. -15,000,000 c. -11,250,000 d.-27,000,000 e. 13,500,000 16. Please select the CORRECT statement e statement of cash flows has four main sections, one each for operating, investing, and financing activities, and one that shows a summary of the cash and cash equivalents at the end of the year. The balance sheet measures the flow of funds into and out of various accounts over time, while the income statement measures the firm's financial position at a point in time Market Value Added (MVA) measures the economic profitability of the firm in a particular time-frame, such as a year. Economic Value Added (EVA) measures economic profitability of the firm over a long time period, essentially the historical life of the firm. c