Operating capital can be defined

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1. Operating capital can be defined as:

a. the amount of operating current liabilities, long-term debt, and equity used to finance the company's operations

b. interest bearing debt plus plus preferred stock plus common equity minus short-term investments

c. operating current assets minus operating current liabilities

d. operating current assets plus net fixed assets

2. Which will result in the highest effective interest rate being charged on a loan?

(a) the loan is at a 5% annual rate with monthly compounding of interest

(b) the loan uses simple interest at 7%

(c) the loan is at a 7% annual rate with quarterly compounding of interest

(d) cannot be determined

Reference no: EM131993080

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