1. Relative to Fama’s Efficient Market Hypothesis, which of the following markets is the most efficient: equity, debt, or foreign exchange?
2. Is there an ideal Debt-to-Equity ratio for a company and if so what is it and why?
3. Pets Store Inc. sells on term or 3/10, net 30. What is the effective annual cost of trade credit under these terms? Use 365 day year.