Question 22 The net effect of a stock repurchase is similar to an interest payment similar to a cash dividend similar to a stock split similar to a reverse stock split Question 23 Float is important in the cash conversion cycle of a firm because its presence reduces a firm's average collection period its presence reduces a firm's average payment period its presence lengthens both a firm's average collection period and its average payment period its presence reduces the investment that a firm must make in its cash conversion cycle Question 24 The is the compound annual rate of return that a firm will earn if it invests in the project and receives the given cash inflows. risk-free rate internal rate of return opportunity cost cost of capital Question 25 the risk of insolvency. A(n) in current assets increases net working capital, thereby decrease; increasing increase; increasing increase; reducing P decrease; reducing