True concerning the free cash flow hypothesis

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Reference no: EM132063999

1. Which of the following sources of finance can typically be obtained in the normal (ie routine) course of business?

a. short-term bank loans

b. trade credit

c. equity from stock sales

d. all of the above

2. Which of the following statements is true concerning the free cash flow hypothesis?

A. Companies with high operating earnings must have high free cash flows.

B. Companies with low capital expenditures must have high free cash flows.

C. Companies that are efficiently managed must have high free cash flows.

D. All of the above are true.

E. None of the above are true.

Reference no: EM132063999

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