Which of the following does NOT represent cash outflows to the firm?

Which of the following does NOT represent cash outflows to the firm?


Interest payments



All of the above are cash outflows to the firm

Which of the following is correct when considering retained profits as a form of financing?

Financing is immediate as retained profits are already held by the company.

Companies can only pay out 50% of their retained profits on dividends so there is always money available.

Businesses either pay out all their retained earnings on dividends or they pay none at all.

All of the above statements are correct.

All of the above statements are incorrect.

Shane Jones wants to buy a one-way bus ticket to Toowoomba, Queensland. The ticket costs $160, but Mr. Jones has only $80. If Shane puts the money in an account that pays 9% interest compounded monthly, how many months must Shane wait until he has $160 (round to the nearest month)?

11 months

133 months

96 months

8 months

None of the above

If you put $700 in a savings account with a 10% nominal rate of interest compounded monthly, what will the investment be worth in 21 months (round to the nearest dollar)?






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