Questions from Financial Management

Q: Wildebrant Inc runs out of inventory all the time both in the

Wildebrant Inc runs out of inventory all the time both in the factory and at the point of sale. However, the company is profitable, and no one worries about it much. Is this ok? What's probably going...

Q: You're an analyst in the finance department of Flyover Corp., a

You're an analyst in the finance department of Flyover Corp., a new firm in a profitable but risky high-tech business. Several growth opportunities have presented themselves recently, but the company...

Q: Define vertical, horizontal, congeneric, and conglomerate mergers and describe

Define vertical, horizontal, congeneric, and conglomerate mergers and describe the economic effects of each.

Q: Do all loans have default, liquidity, and maturity risk more

Do all loans have default, liquidity, and maturity risk more or less equally? Are some types of loans relatively free of some risks? Is the debt of a particular organization free of certain risks?...

Q: The Everglo Corp., a manufacturer of cosmetics, is financed with

The Everglo Corp., a manufacturer of cosmetics, is financed with a 50-50 mix of debt and equity. The debt is in the form of debentures, which have a relatively weak indenture. Susan Moremoney, the f...

Q: You're the CFO of Nildorf Inc., a maker of luxury consumer

You're the CFO of Nildorf Inc., a maker of luxury consumer goods that, because of its product, is especially sensitive to economic ups and downs. (People cut back on luxury items during recessionary t...

Q: Paliflex Corp. needs new capital, but is having difficulty raising

Paliflex Corp. needs new capital, but is having difficulty raising it. The firm’s stock price is at a ten-year low, so selling new equity means giving up an interest in the company for a very low pri...

Q: Things tend to run more smoothly and efficiently with more working capital

Things tend to run more smoothly and efficiently with more working capital. With respect to receivables and inventory, explain why this statement isn't absolutely true. In other words, why might a v...

Q: You and your friend Harry have started a business. Harry is

You and your friend Harry have started a business. Harry is a technical whiz, but doesn't know much about business or finance. After several months you've been approved for a $100,000 bank loan at w...

Q: You're the CFO of the Wachusett Window Company, which sells windows

You're the CFO of the Wachusett Window Company, which sells windows to residential builders. The firm's customers tend to be small, thinly capitalized construction companies that are frequently short...