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Shares of small firms with thinly traded stocks tend to show positive CAPM alphas. Is this a violation of the efficient market hypothesis?
Companies with rapidly growing levels of sales do not need to worry about raising funds from outside the firm. Do you agree or disagree with this statement? Explain.
How does accounts receivable factoring work? What are the benefits to the two parties involved? What are the risks?
What are the primary requirements for a successful JIT inventory control system?
What are the benefits of the JIT inventory control system?
Suppose you find that prices of stocks before large dividend increases show on average consistently positive abnormal returns. Is this a violation of the EMH?
What are the primary variables being balanced in the EOQ inventory model? Explain
Accounts receivable are sometimes not collected. Why do companies extend trade credit when they could insist on cash for all sales?
What are the benefits of "paying late" (but not too late) and how do companies attempt to do this?
Which offers the higher expected return? If you expect the rate of inflation to be 3% over the next year, which is the better investment? Why?
What are the benefits of "collecting early" and how do companies attempt to do this?
A stock trades at $100 with a 6 months put option (strike price=$100) trading at $3.50. If the 6 months call option trades at $6.50. What is Rf?
What is the difference between pro forma financial statements and a cash budget? Explain why pro forma financial statements are not used to forecast cash needs.
What are the negative consequences of a company holding too much cash?
Maple Corporation's stockholders' equity at June 30, 2000, consisted of the following: The book value per share of common stock is:
Explain the factors affecting the choice of a minimum cash balance amount.
What is the most conservative type of working capital financing plan a company could implement? Explain.
The fund charges 12b-1 fees of 1%, which are deducted from portfolio assets at year-end. What is net asset value at the start and end of the year? What is the rate of return for an investor in the f
What are the advantages and disadvantages of the aggressive working capital financing approach?
What is the matching principle of working capital financing? What are the benefits of following this principle?
What are the risks associated with using a large amount of short-term financing for working capital?
Explain how a firm determines the optimal level of current assets.
What is the primary advantage to a corporation of investing some of its funds in working capital?
What is the effect of stock (not cash) dividends and stock splits on the market price of common stock? Why do corporations declare stock splits and stock dividends?
Do you believe an increased common stock cash dividend can send a signal to the common stockholders? If so, what signal might it send?