Which of the following actions would improve a firm's liquidity? ...

[jrubin]

Which of the following actions would improve a firm's liquidity?
 
  A) repurchasing stock
  B) selling bonds and increasing cash
  C) increasing the company's dividend payments
  D) buying bonds

Question 2

A significant advantage of the payback period is that it
 
  A) allows for the proper ranking of projects.
  B) tends to reduce firm risk because it favors projects that generate early, less uncertain returns.
  C) places emphasis on time value of money.
  D) gives proper weighting to all cash flows.

[Jayson]

Answer to Question 1

B

Answer to Question 2

B