1. A negative cash flow to stockholders indicates that the firm _____________________
A. had a negative cash flow from assets.
B. had a positive cash flow to creditors.
C. paid too much dividends.
D. received more from selling stock than it paid out to shareholders.
2. Using an 10% annual discount rate, calculate the present value of $20,000 due in 3 years.
A. $14,872.06
B. $15,026.30
C. $19,090.91
D. $26,620