A. Assume that you have completed your plans and proformas for the next year of operations. The upcoming year looks promising.  What would you most likely do from the following list?  a. From your proformas project your company’s weighted average cost of capital and return on assets, and compare the two b. Take a vacation because you have been working so hard c. Purchase a new house for your personal use because the future is looking so good d. Make sure that your company’s weighted average cost of capital exceeds your company’s return on assets, if not, rework your plans and proformas   B. Assume that all sales are on account. If the average accounts receivable balance was $1,000,000 and accounts receivable turnover was 12 for the last year of operations, what was sales revenue?  a. $10,000,000 b. $15,000,000 c. $12,000,000 d. $6,000,000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A. Assume that you have completed your plans and proformas for the next year of operations. The upcoming year looks promising.  What would you most likely do from the following list? 

a. From your proformas project your company’s weighted average cost of capital and return on assets, and compare the two
b. Take a vacation because you have been working so hard
c. Purchase a new house for your personal use because the future is looking so good
d. Make sure that your company’s weighted average cost of capital exceeds your company’s return on assets, if not, rework your plans and proformas
 

B. Assume that all sales are on account. If the average accounts receivable balance was $1,000,000 and accounts receivable turnover was 12 for the last year of operations, what was sales revenue? 

a. $10,000,000
b. $15,000,000
c. $12,000,000
d. $6,000,000
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