permanent current assets and some seasonal current assets being financed using long-term securities. a. True b. False (15-3) Current asset financing F S Answer: a EASY 7. Although short-term interest rates have historically averaged less than long-term rates‚ the heavy use of short-term debt is considered to be an aggressive current asset financing strategy because of the inherent risks of using short-term financing. a. True b. False(15-4) Cash conversion cycle F S Answer: b EASY 8. If
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Value. Using the probability of death each year‚ prevailing interest rates and assumed inflation rates to find the discounted present value of a future income stream. x Assessing the family’s total economic needs and subtracting financial resources available to meet those needs. Estimating the sum of money which‚ when paid in installments‚ will produce the same income as the person would have earned‚ after deducting assumed amounts for taxes and personal maintenance expenses
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Defining Feminism What comes to mind when you hear the word “feminism” or “feminist”? Let’s start with the basics. Sex‚ politics‚ women‚ oppression‚ equality‚ media and etc. only make up a portion of what feminism stands for in our society today. With so many varied opinions‚ feminism can be very difficult to define yet alone understand. However‚ by conducting research online and studying the works of both Hooks and Valenti‚ I was able to articulate my own perspective on what feminism personally
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Debt is Good for You (01/25/2001) Franco Modigliani and Merton Miller published their famous theory about the optimal balance on debt and equity of the corporate finance. In the Modigliani –Miller theory they stated that the value of the firm is independent of firm’s capital structure. As the portion of debt goes up‚ the firm will be riskier‚ and the expected return will increase. In an efficient market‚ the business risk does not vary with leverage. But later‚ Modigliani –Miller theory modified
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Question 1 Not yet answered Marked out of 1.00 Flag question Question text A project has initial costs of $3‚000 and subsequent cash inflows in years 1 ? 4 of $1350‚ 275‚ 875‚ and 1525. The company’s cost of capital is 10%. Calculate the payback period for this project. Select one: A. 3.33 years B. 3.67 years C. 4.00 years D. 4.25 years Question 2 Not yet answered Marked out of 1.00 Flag question Question text A project has initial costs of $3‚000 and subsequent cash inflows in years
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1. Define Ethics -the study of standards of conduct and moral judgment; moral philosophy; the system or code of morals of a particular person‚ religion‚ group‚ profession‚ etc. -Ethics can be one of two things: it can be something that you study and think about‚ or it can be a code that you follow and live by. Thus‚ it would seem that the definition of ethics is a code determined by what is "right" and "wrong." Ethics also refers to a code of conduct that guides an individual in dealing with
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Agriculture is the biggest sector of the economy where majority of the population in the world live in rural areas. The farming sector becomes the key participant in the agribusiness system worldwide. In the Philippines up to one-half of the country’s economy belongs to the agribusiness sector‚ of which farming comprises only 20 percent. Other portions belong to industrial and commercial sectors that support the whole agriculture sector. Before we analyse what is the difference of agribusiness
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Answer all question (TEST 2) Question 1 a) Smart Corporation has to raise RM5‚000‚000 for its 5-year budget. The corporation has the following three (3) financial sources to be considered: Source I Issue preferred shares that pays 10% dividend on par value of RM100. The current market price of the preferred share is RM75 per share and its floatation cost is at 5% of the par value. Source II Issue bonds that pay 8% interest and mature in ten years. The corporation is planning to sell the
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California Pizza Kitchens Case Questions In 2007 California Pizza Kitchen was experiencing record growth and profits‚ however‚ their stock price experienced a 10% drop. Up until this time CPK had avoided taking on debt‚ but with this stock dip management is considering a stock repurchase program. CPK had practiced conservative fiscal policy to ensure “staying power;” but with interest rates set to rise and competition falling behind‚ this could be the perfect time to take on more risk. With this
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two ways to compute the projects NPV. The first approach is to calculate it in Mexican Pesos and then change the resulting figure into Euros at the spot rate of MXN15.99/EUR. Note that the discount rate that we have used was the yield on the long-term peso-denominated corporate bonds. Below is the screenshot showing how we have done this. Computing NPV in Mexican Pesos (resulting NPV in Euros is 138‚902) Question 2 The second approach is to transfer each cash flow from Mexican Pesos into Euros
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