In which Statement of Cash Flows section would you most likely find information about a firm’s capital structure strategy?

Cash Flows from Investing

Cash Flows from Financing

No evidence in the Statement of Cash Flows

Cash Flows from Operations

2. Which of the following is an accurate description of expected return?

If you invest in a project, you will earn its expected return

Expected return tells you how likely the return is expected to deviate from its average

If you made the same investment 1,000 times, the average of your returns would approximately equal the expected return

The investment with the highest expected return is always the best option