Question
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$8.00 FIN 200 CheckPoint
- From Mathematics: General-Mathematics
- Closed, but you can still post tutorials
- Due on Apr. 05, 2009
- Asked on Apr 05, 2009 at 2:43:16PM
Q:I can only afford $8. Please Help!!!
1) Ideally, which of the following type of assets should be financed with long-term financing?
A. Fixed assets and temporary current assets
B. Temporary and permanent current assets
C. Fixed assets and permanent current assets
D. Fixed assets only
2) When the yield curve is downward sloping, generally a financial manager should
A. utilize long-term financing
B. increase investment and level of financing overall
C. utilize short-term financing
D. expect an economic boom
3) The theory of the term structure of interest rates which suggests that long-term rates are determined by the average of short-term rates expected over the time that a long-term bond is outstanding is the
A. segmentation theory.
B. liquidity premium theory.
C. market average rate theory.
D. expectations hypothesis.
4) The term structure of interest rates
A. plots returns for securities of different risk.
B. shows the relative interest spread between bonds with different risk ratings such as AAA, AA, A, BBB, etc.
C. depicts interest rates for T-bills over the last year.
D. changes daily to reflect current competitive conditions in the money and capital markets.
5) Which of the following is not a method of speeding up collections?
A. Regional collection centers.
B. Extended disbursement float.
C. All of these are methods for speeding up collections.
D. Lock-box system.
6) One of the first considerations in cash management is
A. synchronization of cash inflows and cash outflows.
B. profitability.
C. to put any excess cash into accounts receivable.
D. to have as much cash as possible on hand.
7) We expect that we can receive annual incremental income after taxes of $15,000 which includes an adjustment for uncollectible accounts. What is the maximum commitment to A/R we should be willing to assume if our firm's minimum required after-tax return is 12%?
A. $125,000
B. $168,000
C. $180,000
D. $18,000
8) Hedging
A. increases risk.
B. is a legal agreement to buy or sell a financial futures contract.
C. can be carried out with a futures contract.
D. is a way to protect your accounts receivable position.
