DQuestion 26 2.5 pts The additional interest rate premium required to compensate the lender for the probability that a borrower will not be able to repay interest and principal on a loan is known as? inflation premium default risk premium investment risk premium liquidity premium maturity premium Question 27 2.5 pts Which of the following is not a component in determining the cost of debt? inflation premium maturity premium default risk premium interest rate premium liquidity premium Question 20 2.5 pts Which of the following measures the average time it takes a firm to complete its operating cycle after deducting the days supported by trade credit and delayed payroll financing? inventory-to-sale conversion period purchase-to-payment conversion period sale-to-cash conversion period cash conversion cycle Question 21 2.5 pts Which one of the following "measures" the average days of sales committed to the extension of trade credit? inventory-to-sale conversion period purchase-to-payment conversion period cash conversion cycle period sale-to-cash conversion period Question 6 2 pts A venture's cash conversion cycle will decrease if the purchase-to-payment conversion period increases. True False Question7 2 pts The "cash conversion cycle measures the time it takes to pay off the principal on a loan. False DQuestion 8 2 pts The accounting emphasis on accrued revenue and expenses and depreciation is the same emphasis as that of fnance managers. False 2 pts Question 9 Investment risk is the chance or probability of financial loss on one's venture investment, and can be assurmed by debt, equity, and founding investors, False DQuestion 10 2 pts The weighted average cost of capital is simply the blended, or weighted cost of raising equity and debt capital. True False