39) Assume Anis put her purchases on her credit card and then take advantage of any cash discounts offered. Which one of these credit terms will she prefer? O A) 2/5, net 30 O B) 2/10, net 30 O C) 1/15, net 45 O D) 2/15, net 30 38) Which one of the following will increase a firm's investment in accounts receivables? A) An increase in the number of days for which credit is granted O B) A decrease in credit sales O C) An increase in cash sales O D D) A decrease in average daily credit sales 32) As of the beginning of the quarter, Sara's had a cash balance of RM610. During the quarter, the company collected RM1,350 from customers and paid suppliers RM980. The company also paid a loan payment of RM250 and a tax payment of RM510. What is Sara's cash balance at the end of the quarter? A) RM110 B) RM290 C) RM220 D) RM150 31) Nadiah Enterprise has beginning inventory of RM15,002, accounts payable of RM7,015, and accounts receivable of RM6,244. The end of year values are RM11,000 for inventory, RM6,898 for accounts payable, and RM8,005 for accounts receivable. Net sales are RM150,100 and costs of goods sold are RM53,250. How many days are in the cash cycle? * A) 58.73 days B) 80.2 days C) 55.8 days D) 97.9 days 29) An increase in which one of the following is an indicator that an accounts receivable policy is becoming more restrictive? O A) Bad debts O B) Accounts receivable turnover rate O C) Accounts receivable period O D) Credit sales 28) Which one of these statements is correct? Assume all else held constant. A) decrease in the accounts receivable turnover rate decreases the cash cycle. B) The cash cycle is equal to the operating cycle minus the inventory period. C) A negative cash cycle is preferable to a positive cash cycle. D) A decrease in the accounts payable period shortens the cash cycle. 24) Consider the following information: The market risk premium is 5.2 percent, and the risk-free rate is 2.4 percent. The beta of Stock XY is and the beta of Stock ZZ is State of Economy Probability of State of Economy Rate of Return if State Occurs Stock XY Stock Zz Recession .10 .085 .110 Normal .65 .123 .133 Boom .25 .145 .150 O A) 1.47; 1.76 O B) 1.21; 1.76 O C) 1.47; 1.41 O D) 1.94; 2.13 23) Which one of the following stocks is correctly priced if the risk-free rate of return is 2.84 percent and the market rate of return is 10.63 percent? Expected Return Stock Beta Petron 93 0892 Petronas 1.18 .1203 Coca Cola 1.47 .1540 DRB Hicom 1.02 .1006 O A) Petron B) Petronas C) Coca Cola OD) DRB Hicom 20) Azlan wants his portfolio beta to be .95. Currently, his portfolio consists of RM4,000 invested in Stock D with a beta of 1.26 and RM7,000 in Stock E with a beta of.94. He has another RM8,000 to invest and want to divide it between an asset with a beta of 1.74 and a risk-free asset. How much should you invest in the risk-free asset? OA) RM3,966 B) RM4,425 C) RM4,902 D) RM 4,305