FIN 370 Course Great Wisdom / tutorialrank.com FIN 370 Course Great Wisdom / tutorialrank.com | Page 7

Efficient portfolios
What are the tools available for the manager in financial planning?
Delaying disbursement of cash, reducing collection period, cash
management, and Increasing inventory turnover
Reducing collection period and delaying disbursement of cash
Increasing inventory turnover and reducing collection period
Delaying disbursement of cash and cash management
Suppose that Model Nails, Inc.’s capital structure features 60 percent
equity, 40 percent debt, and that its before-tax cost of debt is 6
percent, while its cost of equity is 10 percent. If the appropriate
weighted average tax rate is 28 percent, what will be Model Nails’
WACC?
7.73 percent
8.40 percent
8.00 percent
16.00 percent
We commonly measure the risk-return relationship using which of
the following?
Coefficient of variation
Standard deviation
Expected returns