Question

A company has positive cash flow from investing and financing activities, but negative cash flow from operating activities. The likely result is:

A) investors may not buy the companys stock because the receipt of dividends is unlikely.

B) investors will continue to buy stock since the companys growth prospects are good.

C) Creditors will continue to lend money to the company.

D) Creditors will demand immediate repayment of all outstanding debt.

Answer

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