Products, but not services, need to be available to customers at the time customers need them. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: Products AND SERVICES need to be available to customers at the time customers need them.
Date: September 19th, 2020
Underwriter generally places non-solicitation advertisements in the Wall Street Journal and/or other important newspapers notifying the public of the availability of an issue. These are called _____. a. tombstone ads b. headstone ads c. notifications of availability d. bond issue schedules ANSWER A
Date: September 19th, 2020
Cash disbursements or ________ are closely tied to the sales forecast as the sales forecasts are typically used for scheduling production. A) expenditures B) receipts C) revenues D) sales ANSWER Answer: A
Date: September 19th, 2020
A firm has a cash conversion cycle of 60 days. Annual outlays are $12 million and the cost of financing is 12 percent. If the firm reduces its average age of inventory by 10 days, the annual savings is ________. (Assume a 365-day year.) A) $10,400 B) $14,000 C) $28,800 D) $39,452 ANSWER […]
Date: September 19th, 2020
The risk of the conservative funding requirements is low because of its high level of net working capital, and the fact that the strategy does not require a firm to use any of its limited short-term borrowing capacity. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Essentially, a convertible bond is a portfolio of: a. a bond and an automobile whose top can be removed. b. an otherwise equivalent nonconvertible bond and shares of the issuing firm’s stock. c. an otherwise equivalent nonconvertible bond and a call option on the firm’s stock. d. an otherwise equivalent nonconvertible bond and a put […]
Date: September 19th, 2020
The sales for January, February, and March are $50,000, $80,000 and $120,000, respectively. For any particular month of sales, the following percentages are received over time in cash: 40% in cash from that same month of sales; 50% in cash from the previous month’s sales; and, 10% in cash from the sales from two months […]
Date: September 19th, 2020
A financial manager needs to know if any of the credit sales will not be paid by customers. This situation will entail a reduction in the estimate of the cash flow due to “bad debts.” Indicate whether the statement is true or false. ANSWER Answer: TRUE
Date: September 19th, 2020
The sales for January, February, and March are $2,000, $6,000 and $10,000, respectively. For any particular month of sales the following percentages are received over time in cash for any given month: 50% in cash from that same month of sales; 30% in cash from the previous month’s sales; and 20% in cash from the […]
Date: September 19th, 2020
Investment banks form a temporary alliance, called a , to underwrite a bond issue. a. selling group b. syndicate c. coalition d. pricing association ANSWER B
Date: September 19th, 2020
