The Lory Bookstore used internal financing as a source of long-term financing for 85% of its total needs in 2013.The company borrowed an additional 25% of its total needs in the long-term debt markets in 2013.What were Lory's net new stock issues in that year?
A)-20%
B)-10%
C)10%
D)20%
E)30%

Question

Quizplus · Accepted Answer

Net new issues = - 7%,as more stock was repurchased than issued.(100% - (85 + 25))= -10%.

The Lory Bookstore Used Internal Financing as a Source of Long-Term