How does a firm evaluate if it has too many or too few current assets vs. its current liabilities?   How does a firm improve its current ratio if it is found to be too low?

why is knowledge of the money market important for carrying out value maximizing working capital short term management?why are opportunity cost of not taking account the risk return trade off of the various short term instruments?

Which of the following is needed to calculate a firm’s WACC?    A. the cost of carrying inventory    B. the amount of capital necessary to make the investment    C. the cost of preferred stock    D. the probability distribution of expected returns E. both b and c

Should a firm’s managers help investors improve their estimates of the firm’s intrinsicvalue? Explain.

What is WACC? Why do firms compute it? What happens to WACC when the debt level of a firm changes?

What are the siginificance of financial ratios (i.e. current ratio; DSO; TATO; profit margin; ROA; ROI)? How do they help us interpert financial data? What are the differences between ratios (i.e. profiability; liquidity; leverage)? What information do they provide for us?

Which of the following is a drawback of payback period method of investment appraisal? Oit is cash flow based OIt consider the time value of money it does not measure potential impact on shareholder wealth OIt is profit based

1.) What value due financial ratios offer investors in reviewing the financial performance of firms?

Profitability index: What is the profitability index, and why is it helpful in the capital rationing process?

Would you expect positive covariances of returns between different types of assets such as returns on Treasury bills, General Electric common stock, and commercial real estate? Why or why not?