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Q: "We can estimate cost of equity using Capital Asset Pricing Model (CAPM)" True False
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A:
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Q: management
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Q: Which of the following is not an element of working capital? a. inventory b.property, plant and…
A: The question is multiple choice question Required Choose the Correct Option
5. Choose from the following that is NOT a major element of the working capital cycle?
A Long-term loan
B Trade payables
C Inventory
D Cash
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- What does the Excel argument Nper refer to? Number of periods of time for a loan or investment. The constant periodic payment required to pay off a loan or investment. Periodic interest rate. Present value of an investment.The present market economy come under _________________ C's of Credit. a. Capital b. Conditions c. Character d. CollateralDefine and give examples of the following: • Loan application • Break-even analysis • Pro-forma income projections • Pro-forma cash flow
- 7. A component of working capital that involves decision on whom to extend credit, the credit limit, and the credit terms a. cash management b. inventory management c. receivable management d. payables management 8. Which of the following would be consistent with a more aggressive approach to financing working capital? a. Financing permanent needs with short-term funds. b. Financing permanent inventory buildup with long-term debt. c. Financing temporary needs with short-term funds. d. Financing some temporary needs with long-term funds. 9. The length of time between the acquisition of inventory and payment for it is called the a. Operating cycle. b. Inventory conversion period. c. Accounts receivable period. d. Accounts payable deferral period.A company’s ability to earn more on borrowed money than the associated interest cost so that net income increases is called: A. Interest B. A debenture C. Financial leverage D. CovenantsWhich of the following is a non-cash working capital account? Question 10 options: cash long-term loan accounts payable retained earnings
- Create simple examples to illustrate the following concepts.i. Time value of moneyii. Effective interestiii. Sinking Fundiv. Amortized loanThe effects on working capital and current ratio if a short-term payable is converted into a long-term payable would Working Capital Current Ratioa. Decrease Decreaseb. Increase Increasec. Increase No effectd. Decrease No effect3. Future value The principal of the time value of money is probably the single most important concept in financial management. One of the most frequently encountered applications involves the calculation of a future value. The process for converting present values into future values is called four time-value-of-money variables. Which of the following is not one of these variables? The trend between the present and future values of an investment The duration of the deposit (N) The interest rate (t) that could be earned by deposited funds The present value (PV) of the amount deposited This process requires knowledge of the values of three of 4
- Which of the following methods consider the time value of money? A. payback and accounting rate of return B. payback and internal rate of return C. internal rate of return and accounting rate of return D. internal rate of return and net present value,Match the following terms with the appropriate definition.Effective yield or interest rateMonetary liabilityCompound interestPresent ValueFuture value of a single amountA.Fixed obligation to pay an amount in cash.B.The rate at which money will actually grow.C.Interest accumulates on interest.D.Current worth of future cash flows.E.The money to which an amount invested will grow over time.The yield on a savings account is also referred to as Select one: of O A. liquidity. O B. compounding. zion O C. rate of return. O D. asset management. O E. insolvency.