1. A firm with a cash cycle of 120 days can stretch its average payment period from 30 days to 50 days. This will result in a/an ________.

A. decrease of 20 days in the cash cycle

B. increase of 20 days in the cash cycle

C. decrease of 20 days in the operating cycle

D. increase of 20 days in the operating cycle

2.A firm has $2,000,000 earnings available to common stockholders, 500,000 shares of common stocks outstanding, and dividends of $1 per share. The firms stock market price is currently at $80 per share. The firms P/E ratio is A. 10 B. 16 C. 20 D. none of the above; the correct answer is ____________

3. In the previous question, the firms dividend payout ratios is A. 20% B. 25% C. 40% D. none of the above; the correct answer is _____