Describe the operating cycle and cash cycle

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1. Describe the operating cycle and cash cycle. What are the differences?

2. Consider a firm with a debt to market equity ratio of 0.7. If the firm's debt yields 4.5% and its equity must return 8.4%, what is the firm's WACC? Ignore effect of taxes and suppose there is no preferred stock.

Reference no: EM132030760

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