Q9. Which of the following in NOT a potential benefit of granting trade credit ? a. may assist in generating additional sales; b. may allow quicker movement of inventory; c. enhances competitiveness for the firm granting credit; d. a delay in receiving payment from customers.

Q10.What is the present value of a series of $6.000 end of the year cash to be received if the required rate of return is 5% per year and the first cash flow is one year from today? a. $300 ; b. $8333,33 ; c. $120000; d. $12000.

Q11. Mannny Gropu borrows money from the bank on a short term note due in 9 months. This type of financing would be most appropriate for which of the following activities? a. the support of accounts receivables; b. purchase of company vehicle; c. the financing of new equity; d. the construction of a new warehouse.

Q12. The maturity of an issue of preferred stock is : a renewable every five years; b. variable between 15 and 30 years; c. indefinite , just as the maturity of common shares; d. the same as the longest maturity bond issued by the firm.