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Author Question: Which of the following would normally occur if a firm increases its investment in current assets? ... (Read 86 times)

ts19998

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Which of the following would normally occur if a firm increases its investment in current assets?
 
  A) The firm's net working capital would decline.
  B) The firm's liquidity would be worsened.
  C) The firm's profit margin would improve.
  D) The firm's liquidity would be improved.

Question 2

Kokapeli, Inc. has a target capital structure of 40 debt and 60 common equity, and has a 40
  marginal tax rate.
 
  If the firm's yield to maturity on bonds is 7.5 and investors require a 15 return
  on the firm's common stock, what is the firm's weighted average cost of capital?
  A) 10.80 B) 12.00 C) 7.20 D) 12.25


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amandanbreshears

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ts19998

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Reply 2 on: Jul 10, 2018
Thanks for the timely response, appreciate it


okolip

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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