Which of the following is a source of cash for a firm?
A) Retained earnings
B) Issuing new debt
C) Issuing new equity
D) All of these

Question

Quizplus · Accepted Answer

All of these options are sources of cash for a firm. Retained earnings can be used if the firm has profits that have not been paid out as dividends, issuing new debt can provide cash in exchange for future interest payments, and issuing new equity can provide cash in exchange for ownership shares in the company.

Which of the Following Is a Source of Cash for a Firm