Which of the following actions would increase the amount of cash on a firm’s balance sheet? It buys new plant and equipment at a cost of $3 million. It increases dividends paid on its common stock from $1.25 to $1.50. It issues $2 million of new common stock. It increases its inventory by $0.5 million.
Which of the following actions would increase the amount of cash on a firm’s balance sheet? It buys new plant and equipment at a cost of $3 million. It increases dividends paid on its common stock from $1.25 to $1.50. It issues $2 million of new common stock. It increases its inventory by $0.5 million.
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 3Q: If a “typical” firm reports $20 million of retained earnings on its balance sheet, can the firm...
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Which of the following actions would increase the amount of cash on a firm’s balance sheet?
- It buys new plant and equipment at a cost of $3 million.
- It increases dividends paid on its common stock from $1.25 to $1.50.
- It issues $2 million of new common stock.
- It increases its inventory by $0.5 million.
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