Bellview Broadcasting Inc.generates greater cash flows than necessary to continue operations.As a result,the firm could choose to:

Question

Quizplus · Accepted Answer

Since the firm is generating greater cash flows than necessary to continue operations, it has the option to use this excess cash flow to increase dividends to shareholders, buy back outstanding shares of stock to decrease the number of shares outstanding and potentially increase the value of remaining shares, and make acquisitions consistent with their mission and vision to potentially increase long-term profitability. Therefore, all of the above choices would be the best options for the firm to consider.