Payout policy refers to the decisions that firms make about whether to distribute cash to shareholders, how much cash to distribute, and by what means the cash should be distributed. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Eurobonds A) may be denominated in dollars or in the currency of another country. B) are always denominated in U.S. dollars. C) are always denominated in the foreign currency. D) may not be split so that part of it is denominated in one currency and the balance is in another. ANSWER A
Date: September 19th, 2020
Rapidly growing firms pay high dividends to shareholders. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
The ________ motive for holding cash is the need to pay debts that arise as a regular consequence of doing business. A) Transactional B) Precautionary C) Speculative D) Intuitive ANSWER A
Date: September 19th, 2020
Dividends are the only means by which firms can distribute cash to shareholders. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
The primary advantage of Eurobonds is A) the fact that LIBOR is set in competitive markets and enables firms to borrow funds at lower interest rates. B) more favorable tax treatment of earnings compared with the U.S. C) the relative lack of regulation compared with similar markets in the U.S. D) their greater degree of […]
Date: September 19th, 2020
What would help track the use of discounts offered as well as delinquency occurrence? A) Debt Table B) Aging Schedule C) Invoice Tracker D) Average Collection Period ANSWER B
Date: September 19th, 2020
In one sense, holding cash is a waste of resources. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Which of the following does not relate to “float”? A) Stock-outs B) Check-processing delays C) Electronic funds transfer (EFT) D) Concentration banking ANSWER A
Date: September 19th, 2020
________ float occurs when there is a delay between when a firm issues a check and when the funds are removed from the checking account balance. A) Net B) Book balance C) Disbursement D) Collection E) Electronic funds transfer (EFT) ANSWER C
Date: September 19th, 2020
