Question 1

 

The time between when the firm pays its suppliers and when it collects money from its customers is known as the:

Question 2

Assume a firm's production process requires an average of 80 days to go from raw materials to finished products and another 40 days before the finished goods are sold. If the accounts receivable cycle is 70 days and the accounts payable cycle is 80 days, what would the operating cycle be?

Question 3

 

Which of the following is not an advantage of short-term borrowing?

 

Question 4

 

A firm can reduce its cash conversion cycle by

Question 5

 

The time between ordering materials and collecting cash from receivables is known as the:

 

Question 6

 

If a firm has positive net working capital, the current ratio is:

 

Question 7

 

When old short-term debt is replaced by new short-term debt as the old debt comes due, the process is known as:

Question 8

 

If a firm actually sells its accounts receivable, the process is known as:

 

Question 9

 

If total assets are $100,000, fixed assets are $30,000, current liabilities are $20,000, then net working capital is:

 

Question 10

 

For most lines of business the basic source of short-term loan financing is:

 

Question 11

 

The payback period concept is best explained by which of the following?

 

Question 12

 

When considering the time value of money, which of the following four methods of project evaluation would appear to be the least satisfactory?

 

Question 13

 

The internal rate of return concept is best explained by which of the following?

 

Question 14

 

If a project has a positive net present value (NPV), then the profitability index is:

 

Question 15

 

The time required for the cumulative cash flows from a project to equal zero is called the:

 

Question 16

 

The cost of capital for retained earnings:

 

Question 17

 

What is Ningbo Shipping's WACC if it's after tax cost of debt is 3.5%, it's cost of retained earnings is 14%, and the firm's market value of debt is $40 million while the market value of its equity is $60 million?

 

Question 18

 

The cost of retained earnings is:

 

Question 19

 

Ningbo Shipping, which has an average tax rate of 40 percent, would like to estimate the after-tax cost of debt for a 15-year, 12 percent, $1,000 par value bond, selling at $950. Based on this information, the after-tax cost of debt is:

 

Question 20

 

The cost of debt:

 

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Status NEW Posted 15 Sep 2019 04:09 PM My Price 5.00

FIN----------- 10-----------0 W-----------eek----------- 11----------- Qu-----------iz-----------

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