Question
Question 1 What is the most correct implication of the additional funds needs (AFN)? If AFN is negative, then you must secure additional financing. If
Question 1
What is the most correct implication of the additional funds needs (AFN)?
| If AFN is negative, then you must secure additional financing. | ||
| If AFN is negative, then you have extra funds to pay off debt. | ||
| If AFN is positive, then you have extra funds for short-term investments. | ||
| If AFN is negative, then you must issue additional new stock. |
Question 7
You currently own 1,000 shares of stock in Beverly Brothers Inc. The stock currently trades at $100 a share. The company is contemplating a 5-for-1 stock split. Which of the following best describes your position after the proposed stock split takes place?
a. You will have 1,000 shares of stock with $100 a share.
b. You will have 1,000 shares of stock with $20 a share.
c. You will have 5,000 shares of stock with $100 a share.
d. You will have 5,000 shares of stock with $20 a share.
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Analysis for Financial Management
Authors: Robert C. Higgins
10th edition
007803468X, 978-0078034688
