Author: Anonymous

If inventory is sold on credit, the quick ratio declines.

If inventory is sold on credit, the quick ratio declines.

The time value of money suggests ​

​Risk may be incorporated into capital budgeting by 1. increasing an investment’s internal rate of return by risk premium 2. adjusting the cash flows by the probability of occurrence 3. increasing the cost of capital by a risk premium

Increasing the speed with which receivables are collected has no impact on the cash budget.​

If a stock is selling for $90 and is split 3 for 1, the new price of the stock should be $30.​

The cost of debt is affected by​ 1. retained earnings2. firm’s tax rate3. interest rate

Stock repurchases

If a company enters bankruptcy court, bondholders should realize

Regression analysis assumes that equity as a percent of total assets is fixed.​