Generally, nonfinancial U.S. corporations have financed their capital expenditures through
A)issuance of new equity.
B)issuance of debt.
C)increases in working capital.
D)internally generated cash.

Question

Quizplus · Accepted Answer

Nonfinancial U.S. corporations have typically financed their capital expenditures through internally generated cash, which includes retained earnings and depreciation charges. This is a common practice as it avoids the need for external financing, which can come with higher costs such as interest expenses or dilution of current shareholders' ownership. Issuance of new equity or debt or increases in working capital may still be used in certain situations, but internally generated cash is the preferred choice.

Generally, Nonfinancial U