Questions from Corporate Finance

Q: Inventory is excluded when the quick ratio or acid-test ratio

Inventory is excluded when the quick ratio or acid-test ratio is calculated because inventory is the most difficult current asset to convert to cash without loss of value. What types of inventory are...

Q: What does a very high inventory turnover ratio signify?

What does a very high inventory turnover ratio signify?

Q: What additional information does the fixed asset turnover ratio provide over the

What additional information does the fixed asset turnover ratio provide over the total asset turnover ratio? For which industries does it carry greater significance?

Q: How does financial leverage help stockholders?

How does financial leverage help stockholders?

Q: Give an example of a capital budgeting decision and a financing decision

Give an example of a capital budgeting decision and a financing decision?

Q: Why is the ROE a more appropriate proxy (for stockholder value

Why is the ROE a more appropriate proxy (for stockholder value maximization) for some firms than for other firms?

Q: Explain the phrase “a dollar today is worth more than a

Explain the phrase “a dollar today is worth more than a dollar tomorrow”?

Q: You are planning to take a spring break trip to Cancun your

You are planning to take a spring break trip to Cancun your senior year. The trip is exactly two years away, but you want to be prepared and have enough money when the time comes. Explain how you woul...

Q: Explain the importance of a time line?

Explain the importance of a time line?

Q: Explain the difference between compounding and discounting?

Explain the difference between compounding and discounting?