Please see the attached document. There are 30+ multiple choice questions that would need answering. I understand the advance question tool has been removed and will tip $30 for this to be completed.

QUESTION 1 1. A fraction of the available credit on a loan agreement deposited by the borrower with the bank in a low or non-interest-bearing account is called a: A. cleanup loan. B. compensating balance. C. roll-over. D. letter of credit. E. line of credit. 1 points QUESTION 2 1. A key underlying assumption of MM Proposition I without taxes is that: A. corporations are all-equity financed. B. financial leverage increases risk. C. individuals and corporations borrow at the same rate. D. individuals can borrow at lower rates than corporations. E. managers always act to maximize the value of the firm. 1 points QUESTION 3 1. A levered firm is a company that has: A. taxable income. B. accounts payable as its only liability. C. an all-equity capital structure. D. a tax loss carry forward. E. finances some of its operations with debt. 1 points QUESTION 4 1. A prearranged, short-term bank loan made on a formal or informal basis, and typically reviewed for renewal annually, is called a: A. letter of credit. B. cleanup loan. C. line of credit. D. compensating balance. E. roll-over. 1 points QUESTION 5 1. A restrictive short-term financial policy tends to: A. reduce order costs as compared to a more flexible policy. B. grant credit to more customers. C. reduce future sales more so than a flexible or relaxed policy. D. encourage credit sales over cash sales. E. incur more carrying costs than a flexible or relaxed policy does. 1 points QUESTION 6 1. Bilt Rite has sales of $610,000 and cost of goods sold equal to 68 percent of sales. The beginning accounts receivable balance is $58,900 and the ending accounts receivable balance is $61,050. How long on average does it take the firm to collect its receivables? Use average receivables during the year. A. 41.07 days B. 44.09 days C. 26.52 days D. 35.89 days E. 25.98 days 1 points QUESTION 7 1. Boutelle Homes has 4,800 bonds outstanding with a face value of $1,000 each and a coupon rate of 6.4 percent. Interest is paid semiannually. What is the present value of the interest tax shield if the tax rate is 35 percent? A. $1,680,000 B. $106,020 C. $172,400 D. $1,498,800 E. $107,520 1 points QUESTION 8 1. Brook Side reported sales of $738,000 and cost of goods sold of $584,000 for the year. The firm had a beginning inventory of $51,000 and an ending inventory of $46,000. What is the length of the inventory conversion period, using average inventories during the year? A. 30.31 days B. 29.87 days C. 15.24 days D. 31.19 days E. 15.16 days 1 points QUESTION 9 1. Commercial paper is generally issued: A. by large firms. B. by commercial banks. C. for 90 to 180 days. D. for 190 days or less. E. at the prime rate offered by the firm's bank. 1 points QUESTION 10 1. Corporations in the U.S. tend to: A. underutilize debt. B. minimize taxes. C. have extremely high debt-equity ratios. D. rely less on equity financing than they should. E. rely more heavily on bonds than stocks as the major source of financing. 1 points QUESTION 11 1. Crocket Motors has an account receivable balance of $682,400 and the average collection period is 38 days. What are the firm's credit sales per day? A. $259,312.00 B. $23,333.33 C. $17,957.89 D. $236,408.11 E. $71,044.38 1 points QUESTION 12 1. D & F, Inc. expects credit sales of $980, $1,460, $1,730 and $950 for the months of April through July, respectively. The firm collects 25 percent of sales in the month of sale, 65 percent of sales in the month following the month of sale, and 8 percent in the second month following the month of sale. The remaining sales are never collected. How much money does the firm expect to collect in the month of July? A. $1,478.80 B. $1,475.50 C. $1,645.50 D. $1,571.10 E. $1,374.20 1 points QUESTION 13 1. Heritage Farms has sales of $1.62 million with costs of goods sold equal to 78 percent of sales. The average inventory is $369,000, accounts payable average $438,000, and receivables average $147,000. How long is the cash conversion cycle? A. 7.54 days B. 17.29 days C. 14.30 days D. 53.05 days E. 13.19 days 2 points QUESTION 14 1. If 34 percent of customers pay on day 10 and the remainder pay in an average of 28 days, what is the average collection period? A. 21.88 days B. 20.08 days C. 31.40 days D. 19.72 days E. 18.47 days 1 points QUESTION 15 1. If a firm issues debt and includes protective covenants in the indenture then the firm's debt will probably be issued at _____ similar debt without the covenants. A. a slightly higher interest rate than B. an interest rate equal to that of C. a variable interest rate rather than the fixed rate paid on D. a significantly higher interest rate than E. a lower interest rate than 1 points QUESTION 16 1. In a world with taxes and financial distress, when a firm is operating with the optimal capital structure the: A. firm will be all-equity financed. B. required return on assets will be at its maximum point. C. debt-equity ratio will be less than optimal. D. increased benefit from additional debt is equal to the increased bankruptcy costs of that debt. E. weighted average cost of capital will be maximized. 1 points QUESTION 17 1. Jasmine's Boutique has 2,000 bonds outstanding with a face value of $1,000 each and a coupon rate of 9 percent. The interest is paid semiannually. What is the amount of the annual interest tax shield if the tax rate is 34 percent? A. $60,750 B. $58,500 C. $62,250 D. $61,200 E. $60,100 1 points QUESTION 18 1. Jaxon Markets currently has credit terms of net 30, an average collection period of 29 days, and average receivables of $211,410. The firm estimates that if it offered terms of 2/10, net 30 that 45 percent of its customers would pay on day 10 with the remainder paying on average in 32 days. How much cash could the company free up from its accounts receivables if it switched its credit policy? A. $65,009 B. $58,336 C. $64,219 D. $50,301 E. $38,762 2 points QUESTION 19 1. Last year, Wilson's had credit sales of $927,000 and cost of goods sold of $762,000. The beginning of the year inventory was $138,000 and the end of the year inventory was $154,300. If the accounts receivables average $87,400, what is the operating cycle (using average inventories during the year)? A. 88.23 days B. 78.60 days C. 92.09 days D. 70.01 days E. 104.42 days 2 points QUESTION 20 1. Lemoyne mailed an invoice today in the amount of $1,268 with terms of 2/7 net 30. What is the cost of credit to the customer if they pay on the last day of the credit period? Assume a 365-day year. A. 39.62% B. 41.02% C. 39.40% D. 37.80% E. 37.56% 1 points QUESTION 21 1. MM Proposition I without taxes proposes that: A. the value of an unlevered firm exceeds that of a levered firm. B. leverage does not affect the value of the firm. C. the value of a levered firm exceeds that of an unlevered firm. D. shareholder wealth is directly affected by the capital structure selected. E. there is one ideal capital structure for each firm. 1 points QUESTION 22 1. On September 1, a firm grants credit with terms of 2/10 net 30. The customer: A. receives a discount of 2 percent when payment is made on September 1 and pays a penalty of 10 percent if payment is made after October 1. B. receives a discount of 2 percent when payment is made within 10 days. C. must pay a penalty of 2/10 of one percent when payment is made later than October 1. D. receives a discount of 2 percent when payment is made at least 10 days prior to October 1. E. must pay a penalty of 10 percent when payment is made later than 2 days after 1 points QUESTION 23 1. On an average day, DDL Enterprises writes checks totaling $1,500. These checks take an average of 5 days to clear. On an average day, DDL receives checks totaling $1,700 which take 4 days to clear. What is the firm's disbursement float? A. -$6,800 B. $7,500 C. -$700 D. $8,500 E. $1,500 1 points QUESTION 24 1. One of the indirect costs of bankruptcy is the incentive toward underinvestment. Underinvestment generally would result in: A. the firm accepting more projects than it would if the probability of bankruptcy was ignored. B. the firm turning down positive NPV projects that would clearly be accepted if the firm were all-equity financed. C. the firm selecting all projects with positive NPVs. D. shareholders making decisions based on the best interests of the bondholders. E. bondholders contributing the full amount of any new investment, but both stockholders and bondholders sharing in the benefits of those investments. 1 points QUESTION 25 1. The firm's capital structure refers to the: A. mix of debt and equity used to finance the firm's assets. B. amount of capital invested in the firm. C. amount of cash versus receivables the firm holds. D. mix of current and fixed assets a firm holds. E. amount of dividends a firm pays. 1 points QUESTION 26 1. The optimal capital structure has been achieved when the: A. debt-equity ratio is equal to 1. B. debt-equity ratio selected results in the lowest possible weighed average cost of capital. C. cost of equity is maximized given a pretax cost of debt. D. firm's net income is highest. E. weight of equity is equal to the weight of debt. 1 points QUESTION 27 1. The pecking order theory states that firms should: A. use internal financing first. B. issue debt first. C. always issue debt then the market won't know when management thinks the security is overvalued. D. issue new equity first. E. always issue equity to avoid financial distress costs. 1 points QUESTION 28 1. The reason that MM Proposition I does not hold in the presence of corporate taxation is because: A. bondholders require higher rates of return than stockholders do. B. levered firms pay less taxes compared with identical unlevered firms. C. debt is more expensive than equity. D. dividends become a tax shield. E. earnings per share are no longer relevant with taxes. 1 points QUESTION 29 1. The tax savings of the firm derived from the deductibility of interest expense is called the: A. depreciable basis. B. financing umbrella. C. interest tax shield. D. current yield. E. tax-loss carry forward savings. 1 points QUESTION 30 1. UpTown Beverages has a checkbook balance of $132,462. However, when the financial manager looks up the firm's account on the bank's website, the balance that appears is $147,918. What is the net float? Is the net float a collection float or a disbursement float? A. $0; neither collection nor disbursement float B. $15,456; disbursement float C. -$15,456; collection float D. -$15,456; disbursement float E. $15,456; collection float 1 points QUESTION 31 1. Uptown Bank has granted a line of credit of $80,000 with an interest rate of 7.5 percent and a compensating balance requirement of 2.5 percent to Jones Hardware. The compensating balance requirement is based on the total amount borrowed. What is the effective annual interest rate if the firm needs $55,000 for one year to finance its inventory? A. 8.12% B. 8.80% C. 7.69% D. 9.44% E. 7.78% 2 points QUESTION 32 1. When credit is granted to another firm this gives rise to a(n): A. accounts receivable and is called trade credit. B. credit due and is called an installment note. C. trade receivable and is called a secured loan. D. trade receivable and is called an installment note. E. accounts receivable and is called a consumer credit. 1 points QUESTION 33 1. Which one of the following is not empirically correct? A. Most corporations have relatively low debt-asset ratios. B. Debt levels across industries vary widely. C. Some firms use no debt. D. Capital structures are fairly constant across industries. E. Debt ratios in most countries are considerably less than 100 percent. 1 points QUESTION 34 1. Which one of these statements concerning the cash conversion cycle is correct? A. The most desirable cash conversion cycle is the one that equals zero days. B. A negative cash conversion cycle is actually preferable to a positive cash conversion cycle. C. Granting credit to slower paying customers tends to decrease the cash conversion cycle. D. The cash conversion cycle plus the accounts receivable period equals the operating cycle. E. The cash conversion cycle is equal to the operating cycle minus the inventory conversion period. 1 points QUESTION 35 1. Wilson's Dry Goods has a line of credit with a local bank for $250,000. The loan agreement calls for interest of 7.6 percent with a compensating balance requirement of 5 percent, which is based on the total amount borrowed. What is the effective interest rate if the firm needed $138,000 for one year to cover its expansion costs? A. 8.00% B. 8.13% C. 7.60% D. 8.55% E. 8.38% 1 points QUESTION 36 1. Yesterday, Smiley Company sold $22,500 of merchandise on credit. The invoice was sent today with the terms, 3/10 net 40. This customer normally pays on the net date. What is the effective rate of interest the customer is paying by not taking the discount? Assume a 365-day year. A. 45.38% B. 42.31% C. 39.27% D. 40.54% E. 44.86% 2 points 1. QUESTION 37 Gladys Turner borrowed $12,000 from the bank using a 10.19 percent "add-on", one-year installment loan, payable in four equal quarterly payments. What is the effective annual rate of interest? A. 15.99% B. 9.50% C. 16.98% D. 10.19% E. 20.38% 2 points 1. QUESTION 38 Suppose that you're planning a vacation and borrow $2,000 from a bank for one year at a stated annual interest rate of 14 percent, with interest prepaid (a discount interest loan). Also, assume that the bank requires you to maintain a compensating balance equal to 10 percent of the initial loan value. What effective annual interest rate are you being charged? A. 18.42% B. 16.28% C. 24.00% D. 28.00% E. 14.00% 3 points QUESTION 39 1. The Arthos Group needs to borrow $200,000 from its bank. The bank has offered the company a 12-month installment loan (monthly payments) with 9 percent add-on interest. What is the effective annual rate (EAR) of this loan? A. 16.22% B. 18.67% C. 17.97% D. 18.00% E. 17.48% 2 points 1. QUESTION 40 Harris Flooring Inc. is planning to borrow $12,000 from the bank for new sanding machines. The bank offers the choice of a 12 percent discount interest loan or a 10.19 percent add-on, one-year installment loan, payable in 4 equal quarterly payments. What is the effective annual rate of interest on the 12 percent discounted loan? A. 12.52% B. 13.64% C. 10.7% D. 12.00% E. 14.12%