The preemptive right is important to shareholders because it: Consider a 4 year project that has a net investment of $1,200,000. annual net cash flows of $400,000 each year for years 1 through 3, and net cash flow of $440,000 in year 4 (which include the terminal cash flow). The IRR of return for this project is Which of the following descriptions best illustrates a conservative approach to current asset financing? The stock of Music City is selling for $37.50 and pays a current annual dividend of $1.10. What is die implied growth rate of dividends for this firm (assume dividends are expected to grow at a constant rate) if an investor's required rate of return is 14 percent? Roberts Manufacturing has never offered cash discounts to its customers before, but is considering it now. It currently sells on terms of net 50, and its days sales outstanding is 50 days. The new credit terms Roberts is considering are 1/15, net 30. Suppose that after instituting the new credit policy. Roberts sees that 40% of its customers take advantage of the discount and pay on the 15^th day, while the remaining 60% don't take the discount and pay on the 50^th day on average. What is Robert's new days sales outstanding (DSO)