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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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