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Discuss the importance of the calculation and interpretation of ratios, to complete an effective financial ratio analysis.
Discuss the general factors that influence the quality of a company's reported earnings and its balance sheet.
Differentiate between dealer markets and stock markets that have a physical location.
Discuss at least two reasons why a firm might want to offer seasonal datings to its customers.
Determine the annual financing cost of a 6-month (182 day) $20,000 discounted bank loan at a stated annual interest rate of 10 percent.
Describe two techniques that a company can use to hedge against transaction exchange risk.
Describe the various types of financial intermediaries, including the sources of their funds and the types of investments they make.
Describe the primary services a bank provides to a firm. How is the bank compensated for these services?
Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form.
Describe the methods available to a firm for expediting the collection of cash.
Describe the matching approach for meeting the financing needs of a company. What is the primary difficulty in implementing this approach?
Describe the five Cs of credit used in evaluating the creditworthiness of a credit applicant.
Describe the different ways in which capital can be transferred from suppliers of capital to those who are demanding capital.
Describe the differences between country risk and political risk. What is sovereign risk?
Describe the concept of market efficiency. In what sense is this concept an important part of the shareholder wealth maximization objective?
Describe some of the measures used by companies to discourage unfriendly takeover attempts.
Define each of the following terms: Capital structure; business risk; financial risk. Operating leverage; financial leverage, breakeven point
Define cash conversion cycle (CCC). Explain why, holding other things constant, a firm's profitability would increase if it lowered its CCC.
Define and describe the difference between the operating cycle and cash conversion cycle for a typical manufacturing company.
Define and discuss the function of collateral in short-term credit arrangements.
Compare the potential for agency problems in sole proprietorships, partnerships, and corporations. In light of your analysis, why is the corporate form of organization so popular?
Briefly describe the current international monetary system. What are the different types of exchange rate systems?
Briefly describe each of the following financial institutions: commercial banks, investment banks, mutual funds, hedge funds, and private equity companies.
The company's assets are financed with some combination of long-term debt and common equity. What is the company's debt ratio?
Baker Brothers has a DSO of 40 days. The company's average daily sales are $20,000. What is the level of its accounts receivable? Assume there are 365 days in a year.