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1. Cash management system objectives include

a. maintaining sufficient cash to meet disbursal needs.

b. maintaining idle cash balances at "doomsday event" levels.

c. maintaining accounts payable balances at zero by early bill payment.

d. all of the above are objectives of the system.

2. Which of the following statements is correct?

A) The capital structure that minimizes the interest rate on debt also maximizes the stock price

B) The capital structure that maximizes the required return on equity also maximizes the stock price

C) The capital structure that maximizes the WACC also maximizes the stock price

D) The capital structure that minimizes the cost of capital also maximizes the stock price

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92174637

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