Author Question: Bellview Broadcasting Inc. generates greater cash flows than necessary to continue operations. As a ... (Read 39 times)

geodog55 · **on:** Jul 11, 2018

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

A) increase dividends.
B) buy back outstanding shares of stock.
C) make acquisitions consistent with their mission and vision.
D) All of the above.

Question 2

Global Outlets Inc. expects profits to grow in line with revenues. Which of the following statements about efficiency and leverage would then be consistent with no change in ROE as a result of the growth in profitability?

A) No change in asset efficiency and an increase in leverage.
B) No change in asset efficiency and no change in leverage.
C) An increase in asset efficiency and no change in leverage.
D) An increase in asset efficiency and an increase in leverage.