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If liabilities are decreased or assets increased, that generates a cash inflow.​

Stock repurchases reduce​ 1. total equity 2. total assets 3. corporate taxes 4. total liabilities

A cash budget enumerates receipts and disbursements.​

If a bank pays 5 percent compounded semi‑annually, the true rate of interest is less than 5 percent annually.​

Stock repurchases reduce​ 1. total equity 2. total assets 3. corporate taxes 4. total liabilities

Certainty equivalents adjust an investment’s cash outflows in terms of a risk-free return.​

Regression analysis assumes that inventory as a percent of sales is constant.​

When cash is deposited in a checking account, the reserves of commercial banks are increased.​

The sum of a firm’s liabilities and equity equals the sum of its assets.​

Debt financing is more risky for firms than preferred stock financing because