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reduce the cash balances of a business and not reduce the profit for the year

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 6MC: Calculate Computron’s return on invested capital (ROIC). Computron has a 10% cost of capital (WACC)....

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Question

Q13

Which one of the following would reduce the cash balances of a business and not reduce the profit for the year?

Select one:

a. Dividends paid

b. Interest paid

c. Remuneration to directors

d. Distribution costs

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