As the amount of credit extended increases, the ________ decreases. A) Optimal amount of credit B) Net cost of receivables C) Cost of receivables D) Revenues from increased sales ANSWER D
Date: September 19th, 2020
Why might a bank put a hold on a small personal check? A) Not wanting to disburse funds they have not yet received B) Requested by the payee C) Uncertain the check is good D) Prevent fraud ANSWER C
Date: September 19th, 2020
In the 5 C’s of credit analysis, ________ is the ability of the borrower to pay. A) Capacity B) Capital C) Character D) Collateral E) Collections ANSWER A
Date: September 19th, 2020
Large companies may reduce political risk through A) Nationalization. B) Expropriation. C) Joint Ventures. D) Tariffs. ANSWER C
Date: September 19th, 2020
________ is the willingness of the borrower to pay obligations owed. A) Capital B) Character C) Conditions D) Capacity E) Collections ANSWER B
Date: September 19th, 2020
Evaluating foreign investment opportunities involves different principles used to evaluate domestic projects. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Income Statement CFM Majestic Inc Years 1 & 2 ($000,000s) Year 1 Year 2 Sales 381.9 416.3 COGS 244.9 278.9 SG&A 59.7 63.8 Depreciation 13.8 15.4 R & D 5.3 4.3 EBIT 58.2 53.9 Interest Expense 7.3 7.9 Earnings before Income Tax 50.9 46.0 Income Taxes 17.3 14.8 Net Income 33.6 31.2 Referring to the […]
Date: September 19th, 2020
Futures contracts may help firms hedge against exchange rate risk by A) enabling the hedger to offset foreign currency losses by profiting from the sale of the futures contract. B) giving the owner of the contract the right to swap one currency for another at a later date. C) giving the holder of the contract […]
Date: September 19th, 2020
What is the percentage holding cost per period for a credit with the terms of 2/30 net 60? A) .0101 B) .2787 C) .0667 D) .0204 E) .0352 ANSWER D
Date: September 19th, 2020
What is a usual default rate when looking at bad debt losses? A) 2% B) 3% C) 4% D) 5% E) 6% ANSWER A
Date: September 19th, 2020
