What is the company ’ s sustainable growth rate ? 24 . The most common means of financing a temporary cash deficit is a : 25 . The length of time between the acquisition of inventory and its sale is called the : 26 . Here are the most recent balance sheets for Country Kettles , Inc . Excluding accumulated depreciation , determine whether each item is a source or a use of cash , and the amount . 27 . Consider the following financial statement information for the Rivers Corporation : Calculate the operating and cash cycles . 28 . The nominal rate of return on a bond is 7.28 percent while the real rate is 3.09 percent . What is the rate of inflation ? 29 . Unique Stores common stock pays a constant annual dividend of $ 1.75 a share . What is the value of this stock at a discount rate of 13.25 percent ? 30 . How much are you willing to pay for one share of stock if the company just paid an annual dividend of $ 1.03 , the dividends increase by 3 percent annually , and you require a rate of return of 15 percent ? 31 . The relationship between nominal rates , real rates , and inflation is known as the : 32 . Titan Mining Corporation has 9.5 million shares of common stock outstanding and 390,000 5 percentsemiannual bonds outstanding , par value $ 1,000 each . The common stock currently sells for $ 43 per share and has a beta of 1.25 , and the bonds have 15 years to maturity and sell for 114 percent of par . The market risk premium is 8.3 percent , T-bills are yielding 4 percent , and the company ’ s tax rate is 36 percent . a . What is the firm ' s market value capital structure ? b . If the company is evaluating a new investment project that has the same risk as the firm ' s typical project , what rate should the firm use to discount the project ' s cash flows ? 33 . Filer Manufacturing has 8.9 million shares of common stock outstanding . The current share price is $ 59 , and the book value per share is $ 4 . The company also has two bond issues outstanding . The first bond issue has a face value of $ 71.2 million and a coupon rate of 7.6 percent and sells for 107.7 percent of par . The second issue has a face value of $ 61.2 million and a coupon rate of 8.1 percent and sells for 110.1 percent of par . The first issue matures in 8 years , the second in 27 years . Suppose the company ’ s stock has a beta of 1.2 . The risk-free rate is 3.7 percent , and the market risk premium is 7.6 percent . 34 . When estimating the cost of equity using the DDM , which one of these is most apt to add error to this estimate ?