1. JBK Corp has $500,000 of sales, $100,000 of inventories, $80,000 of receivables, and $70,000 of payables. Its cost of goods sold is 70% of sales. Assume a 365-day year. What is JBK’s payable deferral period? A. 59.74 B. 101.78 C. 65.49 D. 95.86 E. 73.00
2. Other things held constant, an increase in financial leverage will decrease a for-profit business’s market risk as measured by its beta coefficient. True or False