Given the scenario described herein, one good solution for the business to invest in a new product when it is short on cash is <u>B. Liquidate some inventory to increase cash flow.</u>
<h3>What is Cash?</h3>
In accounting, cash includes bills, coins, bank balances, money orders, and checks. Cash is the first item in most balance sheets, especially if the company is reporting liquidity. Cash happens to be the most liquid of all assets. Cash also includes cash equivalents, which are assets readily converted into cash.
Thus, the company does not need to raise prices, fire employees, or cut wages to raise cash. It can liquidate some inventory at lower prices if necessary.
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Answer:
PV = 1414
Explanation:
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Answer: $26; $28.057
Explanation:
Total value = $260 million in assets
Shares outstanding = 10 million
Dividends = $2.5 million
Fund value at the start of the year = 
= 
= $26
Fund value at the end of the year:
Dividend per share = 
=
= $0.25
Price gain at 9% with deduction of 1% of 12b-1
Fund value at the end of the year = $26 × 1.09 × (1 - 0.01)
= $28.057
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