When the operating cash flow of a project is equal to zero, the project is operating at the:

A firm grants credit terms of 1/5, net 30 on purchases of $1,000 or greater. What is the effective annual rate of the discount?

You decide to invest in a portfolio consisting of 30 percent Stock A, 30 percent Stock B, and the remainder in Stock C. Based on the following information, what is the expected return of your portfolio? State of Economy Probability of State of Economy Return if State Occurs Stock A Stock B Stock C Recession .21 -15.0% -2.0% -20.9% Normal .48 11.2% 6.6% 15.2% Boom .31 24.8% 13.9% 29.8%

Cline Furniture purchased a mirror on credit from Vine Design one month ago. Cline paid off the accounts payable today. The time period between today and the day Cline will receive cash for the resale of this mirror is called the:

You have a portfolio worth $73,500 that has an expected return of 13.7 percent. The portfolio has $17,300 invested in Stock O, $25,100 invested in Stock P, with the remainder in Stock Q. The expected return on Stock O is 18.5 percent and the expected return on Stock P is11.7 percent. What is the expected return on Stock Q?

The length of time between the day an item is purchased from a supplier until the day that supplier is paid for that purchase is called the:

Quindt Lumber offers credit terms of 2/5, net 20. Based on experience, 93 percent of all customers will take the discount. The firm sells 487 units each month at a price of $649 each. What is the average book value of accounts receivable? Assume a 365-day year.

Assume a firm has a debt-equity ratio of .36. The firm’s cost of equity:

Which one of the following statements is correct concerning bid prices?

Dyrdek Enterprises has equity with a market value of $12.2 million and the market value of debt is $4.25 million. The company is evaluating a new project that has more risk than the firm. As a result, the company will apply a risk adjustment factor of 1.6 percent. The new project will cost $2.48 million today and provide annual cash flows of $646,000 for the next 6 years. The company’s cost of equity is 11.63 percent and the pretax cost of debt is 5.02 percent. The tax rate is 21 percent. What is the project’s NPV?