Questions from Corporate Finance


Q: Indicate the impact of the following on the cash and operating cycles

Indicate the impact of the following on the cash and operating cycles, respectively. Use the letter I to indicate an increase, the letter D for a decrease, and the letter N for no change. a. The terms...

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Q: Silver Enterprises has acquired All Gold Mining in a merger transaction.

Silver Enterprises has acquired All Gold Mining in a merger transaction. Construct the balance sheet for the new corporation if the merger is treated as a purchase for accounting purposes....

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Q: You are long 10 gold futures contracts, established at an initial

You are long 10 gold futures contracts, established at an initial settle price of $1,210 per ounce, where each contract represents 100 ounces. Over the subsequent four trading days, gold settles at $1...

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Q: Why doesn’t financial distress always cause firms to die?

Why doesn’t financial distress always cause firms to die?

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Q: Are exchange rate changes necessarily good or bad for a particular company

Are exchange rate changes necessarily good or bad for a particular company?

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Q: What is the difference between cash management and liquidity management?

What is the difference between cash management and liquidity management?

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Q: Grohl Manufacturing, Inc., has recently installed a just-in

Grohl Manufacturing, Inc., has recently installed a just-in-time (JIT) inventory system. Describe the effect this is likely to have on the company’s carrying costs, shortage costs, and operating cycle...

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Q: Describe each of the following: a. Sight draft.

Describe each of the following: a. Sight draft. b. Time draft. c. Banker’s acceptance. d. Promissory note. e. Trade acceptance.

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Q: Bubbling Crude Corporation, a large Texas oil producer, would like

Bubbling Crude Corporation, a large Texas oil producer, would like to hedge against adverse movements in the price of oil because this is the firm’s primary source of revenue. What should the firm do?...

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Q: Is it possible for a firm’s cash cycle to be longer than

Is it possible for a firm’s cash cycle to be longer than its operating cycle? Explain why or why not.

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