Arguably most risky means of maintaining liquidity

Assignment Help Financial Management
Reference no: EM131318853

Which of the following is the most efficient yet arguably most risky means of maintaining liquidity? .....and please explain why.

A. maintaining favorable operating cycles

B. maintaining significant current assets in excess of current liabilities

C. achieving and maintaining significant and consistent cash receipts from customers

D. maintaining a significant working capital line of credit.

 

Reference no: EM131318853

Questions Cloud

What is the aftertax increment to the cash flow : Morris Motors just purchased some 5-year property at a cost of $216,000 and the property will be depreciated based on MACRS. Which one of the following will correctly give you the book value of this equipment at the end of year 2? What is the afterta..
What is the value of this stock at the beginning : Waller Co. (WAG) paid a $0.157 dividend per share in 2006, which grew to $0.346 in 2012. This growth is expected to continue. What is the value of this stock at the beginning of 2013 when the required return is 15.7 percent?
What would the price be if the p-e ratio increased : New York Times Co. (NYT) recently earned a profit of $2.71 per share and has a P/E ratio of 19.95. The dividend has been growing at a 7.25 percent rate over the past six years. If this growth rate continues, what would be the stock price in four year..
What is the future value of the cash flows : Scottie Barnes has invested in an investment that will pay him $5,400, $5,450, $7,225, and $7,500 over the next four years. If his opportunity cost is 10 percent, what is the future value of the cash flows he will receive? (Round to the nearest dolla..
Arguably most risky means of maintaining liquidity : Which of the following is the most efficient yet arguably most risky means of maintaining liquidity? .....and please explain why.
Shares of sirius satellite radio : You would like to buy shares of Sirius Satellite Radio (SIRI). The current ask and bid quotes are $3.98 and $3.95, respectively. You place a market buy order for 540 shares that executes at these quoted prices. How much money did it cost to buy these..
Using all four investment assessment methods : Assume ABC Company has chosen to invest in new manufacturing equipment. The initial cost of the equipment is $1,200,000. The equipment has a useful life of 20 years. The company uses straight-line depreciation. Their tax rate is 30%. Using all four i..
What would be the stock price in five years : New York Tomes Co. (NYT) recently earned a profit of $2.21 per share and has a P/E ratio of 19.70. The dividend has been growing at a 6.75 percent rate over the past six years. If this growth rate continues, what would be the stock price in five year..
Approximately immunized from changes in interest rates : Suppose there are two bonds, a 30-year zero coupon bond and a 2-year zero coupon bond. Currently, the discount rate, y, is 4%. Suppose we are short $ 1000 in par value of the 30-year-zero coupon bond. How much of the 2-year zero coupon bond do we nee..

Reviews

Write a Review

Financial Management Questions & Answers

  Geithner amp bernanke amid the global financial crisis1

geithner amp bernanke amid the global financial crisis1. from the breadth and depth of the economic downturn it was

  What is the value of the tax shield

An all-equity firm is subject to a 30% tax rate. Its total market value is initially $3,500,000, and there and 175,000 shares outstanding. The firm announces a program to issue $1 million worth of bonds at 10% interest and to use the proceeds to buy ..

  Discuss the significance of property rights including

Discuss the significance of property rights including the significance of being able to exclude others from one's property. Include in this dicussion how property rights affect the poor especially in countries with extremely low per capita incomes.

  Most ratios are difficult to interpret in isolation

Most ratios are difficult to interpret in isolation, but which of the following is almost certainly Bad News, especially if the general economy is in excellent condition?

  Standard deviation of the portfolio return

Mr. Jones has a 2-stock portfolio with a total value of $560,000. $225,000 is invested in Stock A and the remainder is invested in Stock B. If standard deviation of Stock A is 16.80%, Stock B is 10.75%, and correlation between Stock A and Stock B is ..

  What is the duration of a two-year bond

What is the duration of a two-year bond that pays an annual coupon of 11.6 percent and has a current yield to maturity of 13.6 percent? Use $1,000 as the face value. What is the duration of a two-year zero-coupon bond that is yielding 11.5 percent? U..

  In the real world is it possible to construct a portfolio

In the real world, is it possible to construct a portfolio of stocks that has an expected return equal to the risk-free rate? Provide examples.

  What is the after tax weighted average cost of the capital

Jungle Recording Co. reported after tax earnings of 4,000,000 availed to common stock this year. From that the company pays a dividend of $4.00 on each of its 1,000,000 common shares outstanding. What is the before tax weighted average cost of the ca..

  Interest rates vary with the investment horizon

When we refer to the "risk-free interest rate," we mean the rate on U.S. Treasuries. Interest rates vary with the investment horizon. All borrowers, besides the U.S. Treasury, have some risk of default.

  Revenues generated by new product are forecast

Revenues generated by a new product are forecast as follows: Year Revenue 1 $40,000 2 30,000 3 20,000 4 10,000 5 -0- no sales after year 4 Expenses are expected to be 40% of revenues, and working capital required in each year is expected to be 20% of..

  Calculate an average return

You calculate an average return of 10% and a standard deviation of 5%. Assuming the returns are normally distributed, what is the probability that the investment will yield a return of less than 5%?

  What is an installment payments settlement

What is an installment payments settlement? When would an insured individual choose this option?- What is the interest payments option? How does it differ from the installment payments option?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd