Describe aggressive working capital policy

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1. A stock has an expected return of 10.4 percent, its beta is 1.01, and the risk-free rate is 6.3 percent. What must the expected return on the market be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Market expected return

2. Describe an aggressive working capital policy. What are the benefits of such a policy, and what are the potential costs?

3. The cash budget focuses our attention on the timing of cash inflows and outflows. But is it realistic, at all, to assume that we know when these flows might occur, five or six months from now? And if not, if we're really just relying on guesswork, then what's the value of the cash budget?

Reference no: EM131915387

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