A firm has an average age of inventory of 90 days, an average collection period of 40 days, and an average payment period of 30 days. The firm’s operating cycle is ________ days. A) 110 B) 130 C) 120 D) 70 ANSWER B
Date: September 19th, 2020
The EBIT-EPS approach to capital structure involves selecting the capital structure that maximizes earnings before interest and taxes (EBIT) over the expected range of earnings per share (EPS). Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Standard & Poors ratings are grouped into two major categories, investment-grade and speculative- grade. Bonds that are rated (i) are included in the investment-grade group, while speculative-grade bonds are those rated (ii) . (i) (ii) a. AAA, AA, A BBB, BB, B, CCC, CC, C b. AAA, AA, A, BBB BB, B, CCC, CC, C […]
Date: September 19th, 2020
A firm has an operating cycle of 120 days, an average collection period of 40 days, and an average payment period of 30 days. The firm’s average age of inventory is ________ days. A) 80 B) 50 C) 90 D) 70 ANSWER A
Date: September 19th, 2020
Pharma Pesticides Corp. uses the sales forecast to plan production. The company produces the bug killer “2K Spray” one month in advance of the forecasted sale. The January sales forecast of 380 units will be scheduled for December production. However, the company also notes that sales forecasts and actual sales can differ, and the company […]
Date: September 19th, 2020
Firm D cash sales for the month are $100,000 and its accounts receivable payments for the month are $100,000. What is its total incoming cash flow for the month if its beginning cash for the month is $50,000, its wages and salaries for the month are $50,000 and there are no other cash inflows for […]
Date: September 19th, 2020
In response to competition from the Eurobond market, the SEC adopted _____ in 1990, which allows firms to issue bonds in the U.S. market with minimal regulatory red tape as long as they are sold only to qualified investors (e.g., financial institutions). a. the Nonregistration Exception b. Qualified Investors Rule (QIR) c. Rule 99B d. […]
Date: September 19th, 2020
Firm E cash sales in January are $200,000, its accounts receivable payments for January are $100,000, its beginning cash for January is $50,000, and there are no other cash inflows for January. Its accounts payable payments for the January are $100,000 and its wages and salaries for January are $100,000, and its interest payments for […]
Date: September 19th, 2020
Excess cash is an asset that has a/an ________ due to lost earning power for the company. A) opportunity cost B) cash cost C) sunk cost D) erosion cost ANSWER Answer: A
Date: September 19th, 2020
Firm C accounts payable for the month are $100,000 and its wages and salaries for the month are $100,000. What is its total outgoing cash flow for the month if its interest payments for the month are $50,000, its accounts receivable payments for the month are $100,000, and there are no other cash outflows for […]
Date: September 19th, 2020
