Question 11 (4 points) Listen A CEO has just learned about the static theory of capital structure. If he tries to apply this theory approach, which capital structure he's most likely to choose? 1) 100% equity. 2) 60% equity and 40% debt. 3) 100% debt. 4) It does not matter which structure he chooses. Question 12 (4 points) Listen Kennesaw Corp. has an inventory turnover of 5.2 and marks up the inventory an average of 20 percent over its acquisition cost. If the accounts payable period is 52 days and the accounts receivable period is 42 days, what is the operating cycle? 1) 105.02 days 2) 125.02 days 3) 131.83 days 4) 138.00 days