QUESTION 3 Smith & Smith, |nc.'s assets consist only of current assets and net plant and equipment. The rm has total assets of $5 million and has $500,000 of cash, $1.5 million of Accounts Receivable, and $2 million of inventory. The long-term debt is $1.25 million, and notes payable total $500,000. Total common equity is $2.5 million with the remainder of the balance sheet funding coming from accounts payable and accruals. With this information. answer the following: What is the rm's net operating working capital? rt r' If" 1" $1.15 million $2.?5 million $3.25 million Can't be determined 3 points QUESTION 4 Suppose the riskfree rate is 7'96, the required return on the market is 15%, and the beta of a stock is 1.7. If an increase in risk aversion causes the market risk premium to increase to 11%, what happens to the stock's required return? rt If\" ('1 r\" Increase to 21% Increase to 21.4% Increase to 19.'?% Increase to 253%