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If F + X = I + D then it follows that F = I - X + D and F will be negative when
If F + X = I + D then it follows that F = I - X + D and F will be negative when a. no dividends are to be paid and firms have more than sufficient cash flow to cover all investments. b. dividends are to be paid from the surplus remaining after the investment decision. c. no dividends are to be paid and the positive funds from operations are insufficient to make new investments. d. None of the above.
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