The plans have equal interest cost because they finance the same assets

Plan B has lower interest cost in year 1 but greater refinancing risk

Plan B has the lower interest cost in year 1 and no refinancing risk

Plan A has the lower interest cost in year 1 and greater refinancing risk

The interest rate on the renewed loan could rise or the lender could refuse to renew

The receivables automatically become fixed assets at renewal

MMF no longer needs a sales forecast

All purchasing costs become fixed

Inventory necessarily accumulates at the same rate year-round

A conservative financing plan

None of the above - all would typically have the same interest cost

An aggressive financing plan

A financing plan that matches the duration of the financing with the duration of the assets it is financing

Required real rate of return

Risk free rate

Historic yields

Business risk

past dividends, flotation costs, and bond yields.

All of these options are true.

historical dividends, historical growth, and an appropriate discount rate.

expected dividends, future dividend growth, and an appropriate discount rate.

none of the above.

a historic increase in earnings.

a negative outlook for growth.

a positive outlook for growth.

value of future benefits to the holder.

historic dividends.

past performance.

current earnings.

Common stock

Certificate of deposit

Corporate bond

U.S. Treasury bill