8. An increase in will tend to lead to longer cash cycle. a accounts payable period. b. ROE ROA d profit margin e operating cycle C. 9. Which of the following assumptions of the Modgliani and Miller model is not true? a. Perpetual cash flows b. Unequal access to all relevant information Perfect competition d. Homogenous expectations. No transaction costs C 10. The length of time between the acquisition of inventory by a firm and the payment by the form for that inventory is called the: a cash cycle. b. accounts payable period c. accounts receivable period d operating cycle e inventory period