Question 1. How do the following circumstances affect the cash conversion cycle:
(a) favorable credit terms allow the firm to pay its accounts payable slower
(b) inventory turnover increases
(c) accounts receivable turnover decreases?
Question 2. What are some things you could do to speed up the cash conversion cycle?
Question 3. What are some of the downsides of accepting an investment from venture capitalists?
Question 4. Describe the primary methods firms use to raise capital.
Question 5. What is the difference between business risk and financial risk?
Question 6. Describe what capital structure is and what is meant by the optimal capital structure.
Question 7. Stock valuation - how do markets and investors value a stock?