1. If the cash a firm invests in net working capital does not earn the weighted average cost of capital, it should be ________.
a. paid instead in returns to the firm's investors
b. held in retained earnings
c. placed in marketable securities
d. held as cash
2. A firm would increase its investment in net working capital in order to produce ________.
a. dividends in the future
b. cash in the future
c. more marketable securities
d. larger inventories