2. . A firm has an inventory turnover rate of 15, a receivables turnover rate of 21 and a payables turnover rate of 11. How long is the operating cycle? 37.00 days 40.19 days 0 42.87 days 0 42.16 days 3. The carrying value of a firm's account receivable is $1,000,000 and the average collection period is 50 days. The firm's credit sales per day are: O $33,333 O $18,181 0 $1,000,000 O $20,000 4. Stoney Brooke, Inc. has sales of $890,000 and cost of goods sold of $650,000. The firm had a beginning inventory of $36,000 and an ending inventory of $46,000. What is the length of the inventory period? O 15.24 days O 15.61 days 23.02 days 0 21.71 days 5. The cash cycle is defined as the time between: the arrival of inventory in stock and when the cash is collected from receivables selling the product and posting the accounts receivable selling the product and collecting the accounts receivable cash disbursements and cash collection the sale of inventory and cash collection. 9. Your firm has a line of credit with your local bank for $50,000. The loan agreement calls for interest of 10% with a 5% compensating balance requirement which is based on the total amount borrowed. What is the effective interest rate if you need $42,750 for one year to cover your operating expenses? O 8.55% 9.00% 0 10.52% 9.38% 10. Your firm has a debt-equity ratio of .75. Your pre-tax cost of debt is 9% and your required return on assets is 15%. What is your cost of equity if you ignore taxes? 11.25% O 12.21% 0 19.50% O 19.88% 13. Amazon has a cost of equity of 14% and a pre- tax cost of debt of 7%. The required return on the assets is 11%. What is the firm's debt-equity ratio based on MM Proposition II with no taxes? O 0.60 0 0.64 O 0.72 O 0.75 14. As of the beginning of the quarter, you have a cash balance of $300. During the quarter you pay your suppliers $310. Your accounts receivable collections are $420. You also pay an interest payment of $30 and a tax bill of $180. In addition, you borrow $75. What is your cash balance at the end of the quarter? O $225 $245 O $255 O $275 16. X firm has sales of $628,000 and cost of goods sold of $400,000. At the beginning of the year, inventory was $31,000. At the end of the year, the inventory balance was $33,000. What is the inventory turnover rate? O 11.23 times O 15.56 times O 12.50 times O 19.63 times 18. ZAIN has debt with both a face and a market value of $3,000. This debt has a coupon rate of 7% and pays interest annually. The expected earnings before interest and taxes is $1,200, the tax rate is 34%, and the unlevered cost of capital is 12%. What is the firm's cost of equity? 0 13.25% O 13.89% 0 14.14% 14.25%