1. A conservative working capital management policy would be reflected by

a. a high level of investment in current assets and high short-term debt

b. a high level of investment in current assets and low short-term debt.

c. a low level of investment in current assets and high short-term debt

d. a low level of investment in current assets and low short-term deb

2. the dividend theory that dividends are irrelevant to stock values is based upon

1. dividend providing a certain return to the inventory
2. dividend resulting in a higher reinvestment ratio in the company
3. the investment decision being the primary determinant of stock value
4. none of the above