Questions from Financial Management

Q: Firm a wants to acquire Firm B. Firm B’s management agrees

Firm a wants to acquire Firm B. Firm B’s management agrees that the merger is a good idea. Might a tender offer be used? Why or why not?

Q: Barenbaum Industries projects that cash outlays of $4.5 million

Barenbaum Industries projects that cash outlays of $4.5 million will occur uniformly throughout the year. Barenbaum plans to meet its cash requirements by periodically selling marketable securities fr...

Q: The Gentry Garden Center sells 90,000 bags of lawn fertilizer

The Gentry Garden Center sells 90,000 bags of lawn fertilizer annually. The optimal safety stock (which is on hand initially) is 1,000 bags. Each bag costs the firm $1.50, inventory carrying cost is 2...

Q: Explain briefly what the EOQ model is and how it can be

Explain briefly what the EOQ model is and how it can be used to help establish an optimal inventory policy. Is the EOQ concept consistent with just-in-time procedures for managing inventories?

Q: Explain how the EOQ inventory model can be modified and used to

Explain how the EOQ inventory model can be modified and used to help determine the optimal size of a firm’s cash balances. Do you think the EOQ approach to cash management is more or less relevant tod...

Q: Explain how the futures markets can be used to reduce interest rate

Explain how the futures markets can be used to reduce interest rate risk and contracts?

Q: How can swaps be used to reduce the risks associated with debt

How can swaps be used to reduce the risks associated with debt contracts?

Q: a. Derivatives b. Enterprise risk management c.

a. Derivatives b. Enterprise risk management c. Financial futures; forward contract d. Hedging; natural hedge; long hedge; short hedge; perfect hedge; symmetric hedge; asymmetric hedge e. Swap; struct...

Q: Why do liquidations usually result in losses for the creditors or the

Why do liquidations usually result in losses for the creditors or the owners, or both? Would partial liquidation or liquidation over a period limit their losses? Explain.

Q: a. Informal restructuring; reorganization in bankruptcy b. Assignment

a. Informal restructuring; reorganization in bankruptcy b. Assignment; liquidation in bankruptcy; fairness; feasibility c. Absolute priority doctrine; relative priority doctrine d. Bankruptcy Reform A...