1 Consider the following table that contains selected financial data for Woolworths (WOW) for financial year 2018.

Net

Sales

Cost of Sales

Accounts Receivable

Invent.

Accounts Payable

Curr.

Ass.

Curr.

Lia.

WOW

59,965

40,256

420

4,233

5,316

7,181

9,196

Using the data contained in the table,(a)calculate the net working capital for WOW in 2018 (Show all your calculations).(b)What Working Capital Strategy is WOW implementing? Explain why.

2 By increasing the number of compounding periods in a year, while holding the stated annual interest rate constant, you will ________ .

Select one:

a increase the effective annual rate

b not change the effective annual rate

c decrease the effective annual rate

d There is not enough information to answer the question

3 The beta of the risk-free asset is:

Select one:

a 1.0

b 0

c 0.5

d 2.0

4 The ________ decisions involves determining the appropriate make-up of the right-hand side of the balance sheet.

Select one:

a Capital Budgeting

b Investment

c Financing

d Asset Management

5 The cash conversion cycle is

Select one:

a calculated by adding days payables outstanding to the operating cycle

b shorter than the operating cycle because it only begins when a company pays for its inventory

c the same as the operating cycle

d longer than the operating cycle because it only begins when a company pays for its inventory

6 A recession is an economic event that is best characterized as

Select one:

a Unique risk

b Unsystematic risk that cannot be diversified away

c Systematic risk

d Market risk that can be diversified away