Firm has negative cash flow to shareholders for the year

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1. A firm has negative cash flow to shareholders for the year. Which of the following statements MUST be true?

a. the firm paid no dividends

b. the firm issued shares of stock

c. the firm repurchased shares of stock

d. the firm is losing money

e. none of the above

2. A firm borrowed more money over the year and did not issue stock. the plowback ratio is 0. profit margin and total asset turnover did not change. which of the following statements is more likely to be true?

a. the firms return on equity increased

b. the firms equity increased

c. the firms return on assets increased

d. the firms current ratio increased

e. none of the above

Reference no: EM131932990

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