Question: 13 Select the choice below that will make the quick ratio go up: a. Sell inventory and use the proceeds to increase the DSO b.

DSO b. Issue more shares and use the proceeds to inorease inventories.

c. Reduce DSO and keep the proceeds in the cash account. d.

13 Select the choice below that will make the quick ratio go up: a. Sell inventory and use the proceeds to increase the DSO b. Issue more shares and use the proceeds to inorease inventories. c. Reduce DSO and keep the proceeds in the cash account. d. Use some cash to purchase additional inventories. e. Issue more shares and use the proceeds to acquire additional fixed assets. Financial Management Assignment 2 9/10/2016 14. Firm XYZ will issue more shares and use the proceeds to lower its debt. Suppose that this does not change operating income, interest rates, tax rates, or total assets. Which statement is most true? a. The ROA will decrease. b. The EBIT will increase c. Taxable income will decline d. The tax bill will increase. e. Net income will decrease

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