menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Strategic Management
  4. Exam
    Exam 10: Corporate-Level Strategy: Related and Unrelated Diversification
  5. Question
    When a Firm Does Not Pay Out Its Free Cash
Solved

When a Firm Does Not Pay Out Its Free Cash

Question 53

Question 53

True/False

When a firm does not pay out its free cash flow to its shareholders, the shareholders bear an opportunity cost equal to their next best use of those funds.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q16: When one or more components of a

Q36: A company can increase the probability of

Q48: Economies of scope arise when one or

Q50: Free cash flow refers to additional funds

Q51: Research finds that the higher the number

Q52: A strategy based on diversification may fail

Q55: At its simplest level, a joint venture

Q57: New ventures are a more attractive strategy

Q59: A laundromat and a pool hall together

Q67: In which of the following cases are

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines