Questions from Managerial Finance

Q: Why is it important for a firm to minimize the length of

Why is it important for a firm to minimize the length of its cash conversion cycle?

Q: What are likely to be the viewpoints of each of the following

What are likely to be the viewpoints of each of the following managers about the levels of the various types of inventory: finance, marketing, manufacturing, and purchasing? Why is inventory an inves...

Q: Briefly describe the following techniques for managing inventory: (1

Briefly describe the following techniques for managing inventory: (1) ABC system, economic order quantity (EOQ) model, (2) just-in time (JIT) system, and (3) three computerized systems for resource c...

Q: What are the two major sources of spontaneous short-term financing

What are the two major sources of spontaneous short-term financing for a firm? How do their balances behave relative to the firm’s sales?

Q: What is the important difference between international and domestic transactions? How

What is the important difference between international and domestic transactions? How is a letter of credit used in financing international trade transactions? How is “netting” used in transactions be...

Q: Are secured short-term loans viewed as more risky or less

Are secured short-term loans viewed as more risky or less risky than unsecured short-term loans? Why?

Q: In general, what interest rates and fees are levied on secured

In general, what interest rates and fees are levied on secured short-term loans? Why are these rates generally higher than the rates on unsecured short-term loans?

Q: Describe and compare the basic features of the following methods of using

Describe and compare the basic features of the following methods of using accounts receivable to obtain short-term financing: (a) pledging accounts receivable and (b) factoring accounts receivable. Be...

Q: The nominal, risk-free rate on T-bills is

The nominal, risk-free rate on T-bills is 1.23%. If the real rate of interest is 0.80%, what is the expected inflation rate?

Q: Is there a cost associated with taking an early payment discount?

Is there a cost associated with taking an early payment discount? Is there any cost associated with giving up a discount? How do borrowing costs affect the decision to take or forego an early payment...