If a viable firm is not growing but is expected to continue over ...

[tfester]

If a viable firm is not growing but is expected to continue over time, then we would expect changes in net working capital to be equal to:
 
  A) a percentage of total sale.
  B) EBIT.
  C) depreciation.
  D) 0

Question 2

White Company stock has a beta of 2 and a required return of 23, while Black Company stock has
  a beta of 1.0 and a required return of 14.
 
  The standard deviation of returns for White Company is
  10 more than the standard deviation for Black Company. The risk-free rate of return according to
  the CAPM is
  A) 5.
  B) 6.
  C) 4.
  D) impossible to determine with the information given.

[kjohnson]

Answer to Question 1

D

Answer to Question 2

A