Finance

In devising a cash management strategy, you should assume that future

In devising a cash management strategy, you should assume that future interest rates A) will likely be volatile, but accurately forecasted. B) are not likely to change from the levels of present rates. C) will likely be volatile, and difficult to forecast. D) will occur in some random fashion.     ANSWER C

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Date: September 19th, 2020

Given an identical contract rate, which of the following methods for d

Given an identical contract rate, which of the following methods for determining finance charges provides the smallest monthly payment on an installment loan? A) Simple interest method B) Discount method C) Add-on method D) The monthly payment is the same under all three methods listed above.     ANSWER A

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Date: September 19th, 2020

Define systematic and unsystematic risk. What method is used to measur

Define systematic and unsystematic risk. What method is used to measure a firm’s market risk? What will be an ideal response?     ANSWER We can divide the total risk (total variability) of our portfolio into two types of risk: 1. company-unique risk, or unsystematic risk, and 2. market risk, or systematic risk. Company-unique risk […]

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Date: September 19th, 2020