There are two elements to a successful signal (costly and penalty for lying). In regard to the signal of quality provided by a college degree, which one of the following statements best reflects what is meant by the costly element?

Group of answer choices

Completing the academic requirements of college is necessarily more burdensome for low-quality job candidates.

Going to college is expensive and the cost is necessarily more burdensome for high-quality job candidates.

Going to college is expensive and the cost is necessarily more burdensome for low-quality job candidates.

Completing the academic requirements of college is necessarily more burdensome for high-quality job candidates.

A firm is considering a stock buyback or an equal amount of a cash dividend. Which one of the following is not true when comparing the impact of the two ?

Group of answer choices

The firm will have a higher cash balance after the share buyback.

The short-term stock price will be higher in the short-run with the buyback.

The firm's remaining shareholders will have lower immediate tax liability with the stock buyback.

The earnings per share will be higher in the short-run with the stock buyback

A firm offers terms of 1/10, net 30. Then it changes its terms to 1/5, net 30. What is the impact on the effective annual interest rate?

Group of answer choices

Decrease

Increase

No Change

When inventory turnover for your firm increases, what is the impact on your firms cash and operating cycles?

Group of answer choices

cash cycle increases and operating cycle increases

cash cycle increases but there is no change in the operating cycle

cash cycle decreases and operating cycle decreases

there is no change in either cycle

cash cycle decreases but there is no change in the operating cycle