In June, Erie Plastics had an ending cash balance of $35,000. In July, the firm had total cash receipts of $40,000 and total cash disbursements of $50,000. The minimum cash balance required by the firm is $25,000. At the end of July, Erie Plastics had
The time between ordering materials and collecting cash from receivables is known as the:
When determining the operating cycle, which of the following components reduce the length of the cycle?
Working capital does not include:
A firm can reduce its cash conversion cycle by
Which of the following short-term sources of funds is available only to the financially strongest concerns?
If total assets are $100,000, fixed assets are $30,000, current liabilities are $20,000, then net working capital is:
A compensating balance on a bank loan effectively ____________ the cost of the loan.
Which would not be likely to be accepted as collateral for an inventory loan?
When old short-term debt is replaced by new short-term debt as the old debt comes due, the process is known as:
When a project's net present value (NPV) exceeds zero, then:
When considering the time value of money, which of the following four methods of project evaluation would appear to be the least satisfactory?
Which of the following is not considered a stage in the capital budgeting process?
The ratio between the present value of a project's cash inflows and the present value of its initial investment is called the:
The time required for the cumulative cash flows from a project to equal zero is called the:
Ningbo Shipping has common stock with a market price of $25 per share and an expected dividend of $2 per share at the end of the coming year. The growth rate in dividends has been 5 percent and this growth is expected to continue indefinitely. Based on this information, the cost of the firm's common stock equity is
Ningbo Shipping, which has an average tax rate of 40 percent, would like to estimate the after-tax cost of debt for a 15-year, 12 percent, $1,000 par value bond, selling at $950. Based on this information, the after-tax cost of debt is:
A firm's mix of debt and equity defines the firm's:
As a general rule, the capital structure that maximizes stock price also:
What is Ningbo Shipping's WACC if it's after tax cost of debt is 3.5%, it's cost of retained earnings is 14%, and the firm's market value of debt is $40 million while the market value of its equity is $60 million?