The Lory Bookstore used internal financing as a source of long-term financing for 80% of its total needs in 2009.The company borrowed an additional 27% of its total needs in the long-term debt markets in 2009.What was Lory's net new share issues in that year?
A)-20%
B)-7%
C)7%
D)20%
E)27%

Question

Quizplus · Accepted Answer

The total financing needs are 100%. If 80% was covered by internal financing and 27% by borrowing, then the net new share issues would be 100% - 80% - 27% = -7%, indicating a reduction or buyback of shares rather than new issues.

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