Question
3a. Which of the following would increase a company's cash from working capital? Select all that apply Collect accounts receivable more quickly. Stretch payments. Build
3a. Which of the following would increase a company's cash from working capital? Select all that apply
Collect accounts receivable more quickly.
Stretch payments.
Build up inventory ahead of a strong sales cycle.
Pay vendors more quickly.
3b. What is the weighted average cost of capital if a business has a cost of equity of 11%, a yield on debt of 6%, a tax rate of 30%, 100 million market value of debt, and 250 million market value of equity?
7.6%
8.5%
9.06%
9.57%
3c. The matching principle states that:
Assets and liabilities are recorded on the financial statements at the cost at which they were acquired or assumed.
The expenses of a business should be recorded in the periods in which the corresponding revenues are earned.
Financial statements must be free from bias and based on verifiable evidence.
Transactions carried out by a business are separated from those conducted by its owner.
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