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An operating lease usually: a. is for a shorter length oftime than a financial lease. b. is for high-tech equipmentthat might become obsolete rapidly.c. has the […]

Which of the following is most likely to be a temporary sourceof financing? a. Commercial paper b. Preferred stock c. Long-term debt d. All of the […]

The quick ratio is a better measure of liquidity than thecurrent ratio if the firm has current assets composed primarilyof:a. cash. b. work inprocess inventory.c. marketable […]

In the basic model the optimal inventory level is the point atwhich: a. total cost isminimized. b. total revenue ismaximized. c. carrying costs areminimized. d. ordering […]

Given the following annual net cash flows determine the IRR tothe nearest whole percent of a project with an initial outlay of$1520.Year Net Cash Flow1$10002$15003$ 500 […]

The management of inventory is important because: a. carrying too much inventorycan result in a loss of efficiency and profitability. b. carrying excessiveinventory can result in […]

How could you compensate an investor for taking on a significantamount of risk?a. Increase the expected rate of return.b. Raise more debt capital.c. Offer stock at […]

The question Did the common stockholders receive an adequatereturn on their investment? is answered through the use of:a. liquidity ratios.b. profitability ratios.c. coverage ratios.d. leverage ratios.

An increase in ___________ would increase net workingcapital. a. plant and equipment b. accounts payable c. accounts receivable d. both b and c