A share of preferred stock pays a quarterly dividend of $2.50 and currently trades for $50. What rate of return will an investor earn? Select one: A. 2.5% B. 5% C. 10% D. 20% E. 25% 6. Question text Companies that are mostly influenced by seasonal sales have to make a choice between Select one: A. level production and inventory buildup. B. seasonal production and an uneven workforce. C. a stable workforce and a fluctuating workforce. D. All of the above Question 7 Not yet answered Marked out of 2.00 Flag question Question text The general rule for using the weighted average cost of capital (WACC) in capital budgeting decisions is accept all projects with Select one: A. rates of return greater than or equal to the WACC. B. rates of return less than the WACC. C. rates of return equal to or less than the WACC. D. positive rates of return. Question 8 Not yet answered Marked out of 2.00 Flag question Question text One of the first considerations in cash management is Select one: A. to have as much cash as possible on hand. B. synchronization of cash inflows and cash outflows. C. profitability. D. to put any excess cash into accounts receivable. Question 9 Not yet answered Marked out of 2.00 Flag question Question text Which of the following is NOT a method of speeding up collections? Select one: A. Lock-box system B. Regional collection centers C. Extended disbursement float D. All of the above are methods for speeding up collections. Question 10 Not yet answered Marked out of 2.00 Flag question Question text Which of the following securities represents an unsecured promissory note issued by a corporation? Select one: A. Certificates of deposit B. Savings accounts C. Commercial paper D. Money market fund Question 11 Not yet answered Marked out of 2.00 Flag question Question text Dun & Bradstreet is known for providing Select one: A. interest rate information to cash managers. B. credit scoring reports that rank a company’s payment habits relative to its peer group. C. cash management systems to corporate treasurers. D. consumer credit reports to credit card companies. Question 12 Not yet answered Marked out of 2.00 Flag question Question text The costs of carrying inventory do not include Select one: A. the interest on funds tied up in inventory. B. the cost of warehouse space. C. ordering costs. D. insurance and handling costs. Question 13 Not yet answered Marked out of 2.00 Flag question Question text A firm’s average accounts receivable (A/R) is $2.5 million and is financed by a bank loan with 11% annual interest. It is considering a regional lockbox system to speed up collections that it believes will reduce A/R by 20 percent. The annual cost of the system is $15,000. What is the estimated net annual savings to the firm from implementing the lockbox system? Select one: A. $500,000 B. $ 60,000 C. $ 55,000 D. $ 40,000 Question 14 Not yet answered Marked out of 2.00 Flag question Question text On a typical day a firm writes $10,000 in checks. It generally takes 4 days for these checks to clear. Each day the firm typically receives $10,000 in checks that take 3 days to clear. What is the firm’s net float? Select one: A. $70,000 B. $ 40,00 C. $ 30,000 D. $ 10,000 Question 15 Not yet answered Marked out of 2.00 Flag question Question text A vendor offers you trade credit of 2/10, net 45. The value of the discount is the equivalent of ________%. Select one: A. 12% B. 15% C. 21% D. 32% Question 16 Not yet answered Marked out of 2.00 Flag question Question text Bank loans to business firms Select one: A. are usually short-term in nature. B. are preferred by the banker to be self-liquidating. C. may require compensating balances. D. all of the above Question 17 Not yet answered Marked out of 2.00 Flag question Question text A firm needs $80,000 in funds for expansion. With a compensating balance requirement of 20%, how much will the firm need to borrow? Select one: A. $16,000 B. $80,000 C. $100,000 D. none of the above Quest…

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