Working capital to support the demands of a new project must be funded with cash
ID: 2769885 • Letter: W
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:
inventory and accounts receivable
machinery and equipment
land and buildings
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 firm’s typical projects.
higher than
lower than
equal to
similar to
For the purpose of calculating the cost of capital for a corporation, the capital components are
long term debt, common stock and preferred stock
long-term debt and common stock
debt and preferred stock
long-term and short-term debt
A.inventory and accounts receivable
B.machinery and equipment
C.land and buildings
D.all of these
Explanation / Answer
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:
Answer: B. machinery and equipment
To be accepted, projects that are unusually risky should have to earn Internal Rates of Return that are ____ those earned by a firm’s typical projects.
Answer: A. higher than
For the purpose of calculating the cost of capital for a corporation, the capital components are
Answer: A. long term debt, common stock and preferred stock
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.