The Price-Earnings Ratio (P/E) is _______related to growth, _______related to the discount rate, and ___________related to the stock's risk.

a) positively, positively, negatively

b) negatively, positively, negatively

c) positively, negatively, negatively

d) negatively, negatively, positively

e) negatively, positively, positively

f) positively, negatively, positively

g) negatively, negatively, negatively

h) positively, positively, positively

Your company is looking at investing in a 3-year project that will create EBITDA of $7,000 in the first year, $8,000 in the second year, and $11,000 in the third year. The cost of equipment is $20,000, salvage value is 2,000. The company has a WACC of 10% and tax rate of 30%. Calculate IRR of the project.

a) 15.17%

b) 12.18%

d) 16.84%

e) 16.15%

f) 13.75%

g) 12.36%

Given the following information, how many days, on average, does it take the firm to pay back its suppliers?

Beginning inventory = $50,000 Ending inventory = $45,000 Beginning Accounts Receivable = $60,000 Ending Accounts Receivable = $66,000 Beginning Accounts Payable = $70,000 Ending Accounts Payable = $84,000 Sales = $1,000,000 % credit sales = 60% Cost of goods sold = $500,000

a) 62.5 days

b) 56.2 days

c) 46 days

d) 7.9 days

e) 76.9 days

f) 6.5 days