Question
Working capital to support the demands of a new project must be funded with cash. The assets primarily associated with such working capital requirements include:
Working capital to support the demands of a new project must be funded with cash. The assets primarily associated with such working capital requirements include:
A. | inventory and accounts receivable | |
B. | machinery and equipment | |
C. | land and buildings | |
D. | all of these |
To be accepted, projects that are unusually risky should have to earn Internal Rates of Return that are ____ those earned by a firms typical projects.
A. | higher than | |
B. | lower than | |
C. | equal to | |
D. | similar to |
For the purpose of calculating the cost of capital for a corporation, the capital components are
A. | long term debt, common stock and preferred stock | |
B. | long-term debt and common stock | |
C. | debt and preferred stock | |
D. | long-term and short-term debt |
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