________ is/are the most common form of short-term financing for a small and medium sized firms. A) Commercial paper B) Banker’s acceptances C) Short-term bank loans, or promissory notes, D) New common stock ANSWER C
Date: September 19th, 2020
A ________ is an agreement between a commercial bank and a business that states the maximum amount of unsecured short-term borrowing the bank will make available to the firm over a given period of time, provided sufficient funds are available. A) revolving credit agreement B) line of credit C) commercial paper D) single payment note […]
Date: September 19th, 2020
The ________ feature found with many issues of preferred stock requires that all current and past due preferred dividends must be paid prior to any dividend payout to common shareholders. A) cumulative B) participating C) convertible D) historical ANSWER A
Date: September 19th, 2020
Which of the following is NOT a question related to an industry analysis? A) How close is the firm to full capacity? B) In what industry life cycle is the firm? C) How profitable is the industry? D) What are the overall prospects for revenue frowth and increased profitability in the industry? ANSWER […]
Date: September 19th, 2020
All of the political factors can give managers further insights into the opportunities and risks facing a particular industry EXCEPT: A) favorable tax changes or incentives in the industry. B) pending and new government relations. C) nature and intensity of competition. D) demographic changes in the population. ANSWER C
Date: September 19th, 2020
Preferred shares earn their name in part because they have priority payment over: A) short-term debt obligations. B) long-term debt obligations. C) common stock dividends. D) all of the above. ANSWER C
Date: September 19th, 2020
A single-payment note generally has a maturity of ________. A) 30 days to 9 months or more B) 10 to 12 months or more C) 12 to 24 months or more D) 10 to 24 months or more ANSWER A
Date: September 19th, 2020
At the operating breakeven point, ________ equals zero. A) sales revenue B) fixed operating costs C) variable operating costs D) earnings before interest and taxes ANSWER D
Date: September 19th, 2020
What is LIBOR, how are LIBOR interest rates determined, and for what are they used? What will be an ideal response? ANSWER LIBOR is the London Interbank Offered Rate and is a series of short-term interest rates estimated daily in London by a group of large international banks. Unfortunately, the LIBOR rates (currently […]
Date: September 19th, 2020
What are taxes payable for the Equity and Debt firm? A) $240,000 B) $560,000 C) $300,000 D) $0 ANSWER A Explanation: A) Taxes payable = EBT * Tax rate = $800,000 * .30 = $240,000.
Date: September 19th, 2020
