1. Westsyde Tool Company is expected to pay a dividend of $2.00 in the upcoming year. The risk-free rate of return is 6% and the expected return on the market portfolio is 12%. Analysts expect the price of Westsyde Tool Company shares to be $29 a year from now. The beta of Westsyde Tool Company's stock is 1.20. Using a one-period valuation model, the intrinsic value of Westsyde Tool Company stock today is _________.
$24.29
$27.39
$31.13
$34.52
2. Which one of the following is a primary benefit of implementing zero-balance accounts into a cash management system?
Increased disbursements float
Total elimination of all safety stocks
Additional cash availability
Decreased collection float
Elimination of all float