1. Your firm reduces its days in receivables from 87 to 67, which generates $3.4 million of new investment funds. Growth Rate in Equity will increase because:
A. Total Asset Turnover will increase
B. Investment Income will increase
Both A and B
2. Jams sneaker company enters the market, and upon analysis, determines that they need a 25% share of voice to break through the clutter of existing advertising. If their analysis determines that three other competitors in the market are spending $30 million, $20 million and $40 million dollars, how much must Jams spend?
A. $25 million
B. $30 million
C. $22.5 million
D. $40 million
E. None of the above