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Which one of the following represents a cash outflow from a corporation? Multiple Choice Ο Payment of dividends Ο Initial sal

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Answer #1

Corporation will pay dividends in cash. Thus, it will make a cash outflow.

When corporation make initial sale of common stock, it will receive cash against stocks. Thus, it will make cash inflow.

Proceeds from loan will make a cash inflow in corporation.

Issuance of new securities will also make cash inflow in corporation.

Receipt of tax fund will also make cash inflow in corporation.

Thus, the correct option is (a).

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