Most likely to result in positive cash flow to creditors

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Reference no: EM131932903

1. Which of the following is the most likely to result in a positive cash flow to creditors?

a. borrowing more money

b. issuing shares of stock

c. purchasing fixed assets with cash

d. paying off existing debt

e. investing for the future

2. A firm has return on equity of 10%. the debt-equity ratio is 1.2 and the profit margin is 15%. What is the total asset turnover?

a. .5556

b. .3030

c. .0333

d. 2

e. cannot be determined

Reference no: EM131932903

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