Which of the following best describes cash flow from financing activities?
A) Interest expense, minus dividends paid
B) Increase (or minus decrease) in stock, plus increase (or minus decrease) in debt, minus
interest paid, minus dividends paid
C) Interest income, plus dividend income, minus taxes
D) Interest paid, plus dividends paid, plus increase (or minus decrease) in stock, plus increase
(or minus decrease) in debt
Question 2
Based solely on risk considerations, a mixed debt and equity firm does not have to worry about any financial obligations related to creditors.
Indicate whether the statement is true or false
