Which of the following is/are true regarding firms use of net assets (assets minus liabilities) ?
A) Firms use net assets to generate more net assets through the earnings
B) Firms typically retain some or all of the net assets generated by earnings, causing net assets to increase, along with retained earnings, which is the component of shareholders' equity showing the cause of that increase in net assets.
C) The retention of net assets generated by earnings generally increases the market price of the firm's common shares.
D) Some firms pay periodic dividends to the common shareholders out of net assets.
E) all of the above
Correct Answer:
Verified
Q45: Most publicly traded firms operate as corporations.Which
Q46: Various laws and contracts govern the rights
Q47: Various laws and contracts govern the rights
Q48: Most publicly traded firms operate as corporations.The
Q49: Which of the following is not true?
A)Owners
Q51: The term capital can mean
A)cash, only.
B)long-term assets,
Q52: All corporations issue
A)common stock.
B)preferred stock.
C)treasury stock.
D)convertible stock.
E)putable
Q53: Which of the following is/are not true?
A)Firms
Q54: Which of the following is/are not true?
A)Callable
Q55: The usual entry to record the conversion
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