s Which of the following is NOT commonly regarded as being a a Cash discounts ts Collection policy 2 variable? e Credit standards d Credit period e. Cash conversion cycle onst of goods sold (COGS) average $2,000,000 per month, and it kerps inventory of its monthly COGS on hand at all times. Using a 365-day year, 26 Your fim's c what is its equal to 50% inventory conversion period? a 11.7 days b 13.0 days c 14.4 days d 15.2 days e My calculation i 27. The firm's new CFO believes that the company could reduce its receivables enough to reduce its DSO to the decline? Use a 365-day yearerage. I his were dne, by how much would receivables Sales Accounts receivable Days sales outstanding (DSO) Benchmarks' days sales outstanding (DSO) $110,000 $16,000 53.09 20.00 a. $ 8,078 b. $ 8,975 $9,973 d. $10,970 e. $12,067 Your consulting firm was recently hired to improve the performance of Shin-Soenen Inc, which is highly profitable but has been experiencing cash shortages due to its high growth rate. As one part of your analysis, you want to determine the firm's cash conversion cycle. Using the following information and a 365-day year, what is the firm's present cash conversion cycle? 28. Average inventory - Annual sales. Annual cost of goods sold Average accounts receivable - Average accounts payable - $75,000 $600,000 $360,000 $160,000 $25,000 a. 120.6 days b. 126.9 days c 133.6 days d. 140.6 days e My answer is: days Schalheim Sisters Inc. has always paid out all of its earnings as dividends, hence the firm has no retained earnings. This same situation is expected to persist in the future. The company uses the CAPM to calculate its cost of equity, its target capital structure consists of common stock preferred stock, and debt. Which of the following events would REDUCE its WACC? 29. a. The market risk premium declines. b. The flotation costs associated with issuing new common stock increase. c. The company's beta increases