Firm would increase its investment in net working capital

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Reference no: EM132028837

1. If the cash a firm invests in net working capital does not earn the weighted average cost of capital, it should be ________.

a. paid instead in returns to the firm's investors

b. held in retained earnings

c. placed in marketable securities

d. held as cash

2. A firm would increase its investment in net working capital in order to produce ________.

a. dividends in the future

b. cash in the future

c. more marketable securities

d. larger inventories

Reference no: EM132028837

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