What is the Weighted Average Cost of Capital for XYZ Company, assuming the following:
* The pre-tax cost of long term debt is 8%
* The cost of equity is 11%
* The marginal tax rate is 33%
* Total liabilities = $75,000
* Long term debt = $50,000
* Owners equity = $75,000

• A.7.2%
• B.7.8%
• C.12.4%
• D.8.7%

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Trade terms are renegotiated under e-commerce in order to:

• A.quantify the savings.
• B.balance the payment.
• C.improve the seller's availability.
• D.neutralize the float.

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Banks often control information flow, records and assets, therefore it is critical that banks have:

• A.standard formats for electronic submission.
• B.controlled disbursement procedures.
• C.timetables for service implementation.
• D.backup systems and disaster recovery procedures.

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Which of the following is a component of a company's operating budget?

• A.Capital investments
• B.Long-term debt
• C.Shareholders equity
• D.Accounts receivable

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A company sells products to customers on credit, generating accounts receivable. The company uses the accrual accounting method. Once the company collects good funds from its customers, what is the impact on the financial statements of the company?

• A.Cash balance is increased, and income is not affected.
• B.Cash balance is not affected, and income is increased.
• C.Cash balance is increased, and income is decreased.
• D.Cash balance is increased, and income is increased.

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