Assuming that we can earn a 13.5% return on accounts receivable,which of the following actions to finance an increase in our accounts receivable balance would be optimal?
A) A reduction in marketable securities which are earning a return of 14.2%
B) A decrease in inventories which are earning a 17.6% return
C) An increase in bank loans that would cost us 11.5%
D) An increase in accounts payable that would cost our firm 15%

Question

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The Answer of Assuming that we can earn a 13.5% return on accounts receivable,which of the following actions to finance an increase in our accounts receivable balance would be optimal?
A) A reduction in marketable securities which are earning a return of 14.2%
B) A decrease in inventories which are earning a 17.6% return
C) An increase in bank loans that would cost us 11.5%
D) An increase in accounts payable that would cost our firm 15%

Assuming That We Can Earn a 13