Our company uses a growing perpetuity model to analyse its corporate value. The value is currently modelled based on: Annual revenues $28m Annual costs $20m Net inflow in first year $8m Cost of capital 12% Growth rate 2\% If our company reduced its working capital and capital, with no other changes, shareholders would normally be: ) Unaffected. Worse off. There's not enough information to answer. Better off. Question 2 Our company uses a growing perpetuity model to analyse its corporate value. The value is currently modelled based on: Annual revenues $28m Annual costs $20m Net inflow in first year $8m Cost of capital 12% Growth rate 2\% If our company increased its working capital and capital, with no other changes, shareholders would normally be: Unaffected. Worse off. Better off. There's not enough information to answer. Question 3 Working capital is best defined as: Payables plus Receivables minus Inventory Inventory plus Payables plus Receivables Inventory plus Payables minus Receivables Inventory plus Receivables minus Payables Question 4 Extending trade credit to customers is most likely to: Decrease working capital. Have no effect on working capital. Increase working capital. There is not enough information to