A)

Nova earned $7.20 per share and maintains a stable payout ratio of 60 percent. Nova has 1,000,000 shares outstanding and a capital budget of $5 million. If Nova maintains a debt ratio of 0.50, what were the dividends per share?

	A.	$4.32
	B.	$2.88
	C.	$2.20
	D.	cannot be determined from the information provided

B) Firms seek to ______________ the delay in cash collections and ______________ the delay in cash disbursements.

	A.	increase, increase
	B.	decrease, decrease
	C.	increase, decrease
	D.	decrease, increase