Questions from Financial Management

Q: Support or challenge each of the following statements individually: a

Support or challenge each of the following statements individually: a. Because accounts receivables aren't purchased like inventory or fixed assets, they don't require financing. b. Cash represents...

Q: How does a firm's operating cycle differ from its cash conversion cycle

How does a firm's operating cycle differ from its cash conversion cycle? Explain fully.

Q: Explain the different circumstances under which firms should use short-term

Explain the different circumstances under which firms should use short-term or long-term financing.

Q: You work in the finance department of HiTech Inc. The firm's

You work in the finance department of HiTech Inc. The firm's owner and CEO, Charlie Dollars, is very profit oriented. He understands that short-term interest rates are quite low at the moment, and ha...

Q: What are the advantages and disadvantages of stretching payables? If you

What are the advantages and disadvantages of stretching payables? If you owned your own business, would you do it? Why or why not?

Q: What's the difference between a promissory note, a line of credit

What's the difference between a promissory note, a line of credit, and a revolving credit agreement? Are they mutually exclusive? That is, might one be part of the other?

Q: Explain the difference between pledging and factoring receivables. Which is likely

Explain the difference between pledging and factoring receivables. Which is likely to be more a more expensive source of financing? Is factoring the same kind of financing as pledging?

Q: The central issue underlying the study of leverage is whether or not

The central issue underlying the study of leverage is whether or not it influences stock price and whether there's an optimal structure. But the whole idea seems kind of fuzzy and uncertain. Why are...

Q: Suppose an industry is dominated by three firms, one of which

Suppose an industry is dominated by three firms, one of which is twice as large as the others, which are about the same size. Could a merger of the two smaller firms actually increase competition in t...

Q: Sally Johnson lives in Baltimore, and does business with a large

Sally Johnson lives in Baltimore, and does business with a large, national brokerage firm. When she sends the broker a check, she mails it to a local address in Baltimore. However, when she receives...