1. ABC started the year with 96,000 of accounts receivable. During the year credit sales were 1,711,000 and at the end of the year, ABC had 80,000 of accounts receivable. How much did ABC collect on its accounts receivable during the year?
2. Explain concepts of diversifiable and non-diversifiable risk in portfolio theory.
4. QRM, Inc.'s marginal tax rate is 35%. It can issue 10-year bonds with an annual coupon rate of 7% and a par value of $1,000. New bonds will net the company $966 in proceeds. Determine the appropriate after-tax cost of debt for the firm to use in a capital budgeting analysis?