Questions from Financial Management

Q: A company's terms are net 30 and the ACP is 35 days

A company's terms are net 30 and the ACP is 35 days. Is that cause for alarm? Why or why not?

Q: Discuss the different definitions of debt in ratio analysis.

Discuss the different definitions of debt in ratio analysis.

Q: You invested $20,000 in the stock of HiFly Inc

You invested $20,000 in the stock of HiFly Inc two years ago. Since then the stock has done very well more than doubling in value. You tried analyze HiFly’s financial statements twice in the last tw...

Q: Why do people view having too much debt as risky? If

Why do people view having too much debt as risky? If you were interested in determining whether a company had too much debt, what measure would you use? Why? How much debt do you think would genera...

Q: It can be argued that the TIE ratio doesn't make much sense

It can be argued that the TIE ratio doesn't make much sense. Why? How would you change the measure to be more meaningful? (Hint: Think in terms of cash flows.)

Q: Can managers affect market value ratios?

Can managers affect market value ratios?

Q: Can A competent financial analyst always correctly assess a firm’s financial health

Can A competent financial analyst always correctly assess a firm’s financial health from publicly available information? Explain.

Q: Where do analysts get financial information about companies? What are their

Where do analysts get financial information about companies? What are their concerns about the information?

Q: Financial analysts are generally optimists who believe what they're told. Right

Financial analysts are generally optimists who believe what they're told. Right or wrong? Explain.

Q: If a company's cash account increases from the beginning to the end

If a company's cash account increases from the beginning to the end of the year, there's more cash on hand so that must be a source of cash. Yet the cash account is an asset and the first cash flow r...