1. From the following scenarios, explain, which would be most responsible for a company's average collection period being higher than the industry average?
A) If a company's growth in sales is greater than the growth of sales in the industry.
B) If a company's growth in sales is less than the growth of sales in the industry.
C) Being more aggressive in collecting its accounts receivable than its competitors.
D) Having credit policy standards that are more restrictive than its competitors.
E) Being more lenient in extending credit to its customers than its competitors.
2. How to calculate Return on Equity from the given information
Risk-Free Rate = 2%
Market Return = 8%
Beta = 1.2