Which of the following streams of income is not affected by how a firm is financed (whether with debt or equity)?
Net profit after tax but before dividends
Net working capital
Income before tax
None of the above
Stretching the time taken to pay off accounts payable may
lower the buyer’s credit rating
damage relationships with suppliers
lead to refusal of credit by suppliers
lower the number of discounts foregone
All of the above.
Which of the following provides the greatest annual interest?
10% compounded annually
9.5% compounded monthly
9% compounded quarterly
8.5% compounded daily
8.6% compounded continuously