Questions from General Finance


Q: A manager in your firm decides to employ break-even analysis

A manager in your firm decides to employ break-even analysis. Of what shortcomings should this manager be aware?

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Q: Break-even analysis assumes linear revenue and cost functions. In

Break-even analysis assumes linear revenue and cost functions. In reality, these functions may not always be linear over large output and sales levels. Why?

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Q: You have finally saved $10,000 and are ready to

You have finally saved $10,000 and are ready to make your first investment. You have the three following alternatives for investing the money: • A Microsoft bond with a par value of $1,000 that pays 4...

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Q: Define the following terms: a. Financial structure b

Define the following terms: a. Financial structure b. Capital structure c. Optimal capital structure d. Debt capacity

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Q: What is the primary weakness of using EBIT-EPS analysis as

What is the primary weakness of using EBIT-EPS analysis as a financing decision tool?

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Q: United Parcel Service (UPS) provides package delivery services throughout the

United Parcel Service (UPS) provides package delivery services throughout the United States and the world. Discuss the impact of seasonal variations in the delivery business for forecasting the firm’s...

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Q: Discuss the shortcomings of the percent of sales method of financial forecasting

Discuss the shortcomings of the percent of sales method of financial forecasting.

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Q: What would be the probable effect on a firm’s cash position of

What would be the probable effect on a firm’s cash position of each of the following events? a. Rapidly rising sales b. A delay in the payment of payables c. A more liberal credit policy on sales (to...

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Q: Dell Computer Corporation (DELL) has long been recognized for its

Dell Computer Corporation (DELL) has long been recognized for its innovative approach to managing its working capital. Describe how Dell pioneered the management of net working capital to free up reso...

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Q: There are three major sources of unsecured short-term credit other

There are three major sources of unsecured short-term credit other than accrued wages and taxes. List and discuss the distinguishing characteristics of each.

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