SS11 R40 Working Capital Management Flashcards
1
Q
operating cycle
A
days of inventory + days of receivables
2
Q
cash conversion cycle
A
days of inventory + days of receivables - days of payables
operating cycle - days of payables
3
Q
discount-basis yield
A
% discount from face value * (360/days)
% discount = (face value - price)/face balue
4
Q
bond-equivalent yield
A
HPY * (365/days)
HPY = (face value - price)/price
