All of them

19. Which of the following is correct? increaim's sales grow, its current assets also tend to increase. For instance, as sales and purchases of inventories result in the firm's inventories generally increase, more accounts payable. Thus, spontaneous transactions brought on by sales increases. b. As l . Thus, spontaneous liabilities that reduce AFN arise from ong asa firm does not pay out 100% of its earnings, the firm's annual profit that is tne business (i.e., the addition to retained earnings) is another source of funds for a firm's expansion. c. All of the above are correct. 20. Which of the following is correct? a. Dividend policy affects the requirement for external funds based on the AFN equation. b. Th e maximum growth rate that a firm can achieve with no access to external capital is called the firm's self-supporting growth rate. It can be calculated by using the AFN equatio with AFN equal to zero and solving for g. c. All of the above are correct. 21. A company is expected to have free cash flows of $788,000 next year. The weighted average cost of capital is WACC-10.5%, and the expected constant growth rate is g-6.4c The company has $3 million in short-term investments, $3 million in debt, and 1 million shares. What is the stock's current intrinsic stock price? a. $17.39 b. $17.84 c. $18.29 d. $18.75 e. $19.22 22. Which of the following is correct? a. For a 10-year bond with a 9% annual coupon and a yield to maturity of 8%, if the ye maturity remains constant, the bond's capital gains yield will be negative. b. The longer the time to maturity, the greater the change in the value of a bond in resp to a given change in interest rates. c. All of the above are correct