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
The goal of the daily management of cash is to have sufficient cash on hand to pay the bills without carrying ________. A) excess debt B) excess sunk costs C) excess depreciation D) excess cash ANSWER Answer: D
Date: September 19th, 2020
TRUE or FALSE. Underwriter spreads on corporate bonds reflect substantial economies of scale. a. TRUE b. FALSE ANSWER A
Date: September 19th, 2020
It is ________ of cash flow that is important to the financial manager. A) the timing and amount B) just the timing C) just the amount D) None of the above ANSWER Answer: A
Date: September 19th, 2020
Tryst Energy Inc has an average age of inventory of 65 days, an average collection period of 60 days and an average payment period of 65 days. The firm’s total annual outlays for operating cycle investments are $3.65 million. Assuming a 365-day year, how much financing is required to support its cash conversion cycle? A) […]
Date: September 19th, 2020
In 1982, the SEC adopted Rule 415, also known as the _ rule, which allows qualifying firms to register a bond offering and then sell it either as a whole or piecemeal at any time over several years. a. delayed registration b. deferred registration c. shelf registration d. piecemeal registration ANSWER C
Date: September 19th, 2020
Cash disbursements (expenditures) are not closely tied to the sales forecast as the sales forecasts are not typically used for scheduling production. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: Cash disbursements (expenditures) ARE CLOSELY tied to the sales forecast as the sales forecasts ARE TYPICALLY used for scheduling […]
Date: September 19th, 2020
The timing and the amount of cash flow is important to the financial manager and estimating these cash outflows is part of the ________ process A) income forecasting B) revenue forecasting C) cash forecasting D) cost forecasting ANSWER Answer: C
Date: September 19th, 2020
In the traditional approach to capital structure, as the amount of debt increases in a firm’s capital structure, ________. A) the cost of equity rises faster than the cost of debt B) the cost of debt rises faster than the cost of equity C) debt becomes less risky D) equity cost is unaffected […]
Date: September 19th, 2020
