Financial Management

Question 1

Financial Management

Answer 1

What is the primary focus of working capital management?

Question 2

Financial Management

Answer 2

How is Net Working Capital calculated?

Question 3

Financial Management

Answer 3

What are the characteristics of effective Working Capital Management?

Question 4

Financial Management

Answer 4

What is the Inventory Conversion Period?

Question 5

Financial Management

Answer 5

What is the Receivables Collection Period?

Question 6

Financial Management

Answer 6

What is the Payables Deferral Period?

Question 7

Financial Management

Answer 7

What is the Cash Conversion Cycle?

Question 8

Financial Management

Answer 8

What traits should Cash and Short-Term Investments have?

Question 9

Financial Management

Answer 9

For what are Letters of Credit used?

Question 10

Financial Management

Answer 10

What is the advantage of using Trade Credit?

Question 11

Financial Management

Answer 11

What is a Lockbox System? What are the advantages?

Question 12

Financial Management

Answer 12

What is float?

Question 13

Financial Management

Answer 13

What are Zero Balance Accounts?

Question 14

Financial Management

Answer 14

What is the difference between Treasury Bills- Notes and Bonds?

Question 15

Financial Management

Answer 15

What is commercial paper?

Question 16

Financial Management

Answer 16

What are the advantages and disadvantages of Commercial Paper?

Question 17

Financial Management

Answer 17

What is Economic Order Quantity?

Question 18

Financial Management

Answer 18

What is Carrying Cost?

Question 19

Financial Management

Answer 19

What is Order Cost?

Question 20

Financial Management

Answer 20

What is inventory reorder point?

Question 21

Financial Management

Answer 21

What is a Just In Time (JIT) system?

Question 22

Financial Management

Answer 22

What is Factoring of receivables?

Question 23

Financial Management

Answer 23

What is a Trade Discount?

Question 24

Financial Management

Answer 24

What is the cost of forgoing a discount?

Question 25

Financial Management

Answer 25

What is the Prime Rate?

Question 26

Financial Management

Answer 26

What is the Nominal (Face- Coupon- Stated) Rate?

Question 27

Financial Management

Answer 27

How is Current Yield calculated?

Question 28

Financial Management

Answer 28

What is the Effective (YTM- Market) Rate?

Question 29

Financial Management

Answer 29

What is a Zero Coupon Bond?

Question 30

Financial Management

Answer 30

What are the characteristics of a Junk Bond?

Question 31

Financial Management

Answer 31

What are debenture bonds?

Question 32

Financial Management

Answer 32

What are subordinated debentures?

Question 33

Financial Management

Answer 33

What are Redeemable Bonds?

Question 34

Financial Management

Answer 34

What is a Callable Bond?

Question 35

Financial Management

Answer 35

What is a Convertible Bond?

Question 36

Financial Management

Answer 36

What is a Sinking Fund?

Question 37

Financial Management

Answer 37

What is the disadvantage of Common Stock in comparison to bonds?

Question 38

Financial Management

Answer 38

What is the advantage of Preferred Stock?

Question 39

Financial Management

Answer 39

What is Weighted Average Cost of Capital?

Question 40

Financial Management

Answer 40

What is CAPM?

Question 41

Financial Management

Answer 41

How is Cost of Debt calculated?