1. STD, Inc. is financed with 40 percent debt and 60 percent equity. This mixture of debt and equity is referred to as the firm's ______________________

A. capital structure.

B. capital budgeting.

C. asset allocation.

D. working capital.

2. Which of the following is included in the calculation of net working capital?

A. Dividends paid on the common stock

B. Interest paid on the debt

C. Invoice amount for inventory purchased

D. Newly purchased equipment with a useful life of 5 years