Wednesday, November 13, 2019

The cash flow of a firm which is available for distribution to the firm's creditors and stockholders is called the:

The percentage of the next dollar you earn that must be paid in taxes is referred to as the _____ tax rate. 
 
A. 
mean

B. 
residual

C. 
total

D. 
average

E. 
marginal
Refer to section 2.3


7.
The _____ tax rate is equal to total taxes divided by total taxable income. 
 
A. 
deductible

B. 
residual

C. 
total

D. 
average

E. 
marginal
Refer to section 2.3


8.
The cash flow of a firm which is available for distribution to the firm's creditors and stockholders is called the: 
 
A. 
operating cash flow.

B. 
net capital spending.

C. 
net working capital.

D. 
cash flow from assets.

E. 
cash flow to stockholders.
Refer to section 2.4


9.
Which term relates to the cash flow which results from a firm's ongoing, normal business activities? 
 
A. 
operating cash flow

B. 
capital spending

C. 
net working capital

D. 
cash flow from assets

E. 
cash flow to creditors
Refer to section 2.4


10.
Cash flow from assets is also known as the firm's: 
 
A. 
capital structure.

B. 
equity structure.

C. 
hidden cash flow.

D. 
free cash flow.

E. 
historical cash flow.
Refer to section 2.4

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