The Lory Bookstore used internal financing as a source of long-term financing for 80% of its total needs in 2008.The company borrowed an additional 27% of its total needs in the long-term debt markets in 2008.What were Lory's net new stock issues in that year?
A)-20%
B)-7%
C)7%
D)20%
E)27%

Question

Quizplus · Accepted Answer

Lory Bookstore used 80% internal financing and borrowed 27% from long-term debt markets, totaling 107%. This means they issued -7% in net new stock, indicating a reduction or buyback of stock.

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