Banks prefer to make short term loans to finance

Assignment Help Financial Management

Reference no: EM131087607

Banks prefer to make short term loans to finance the following:

A. land purchases

B. accounts receivable & inventory

C. building purchases

D. equipment purchases

Reference no: EM131087607

Questions Cloud

Average undergraduate accumulates about credit card debt : According to the survey of college students by Fidelity, the average undergraduate accumulates about $3,000 in credit card debt. If, instead of having to make that credit card payment, a new college graduate invested that same amount monthly in a mut..

When common stock is repurchased and retired : When common stock is repurchased and retired, the underlying motive is to delay taxes boost the stock's dividends distribute the excess cash to the owners reduce the retained earnings balance.

An increase in fixed operating costs will result in : An increase in fixed operating costs will result in

Cash dividend pay no cash dividends pay less dividends : According to the residual theory of dividends, if a firm's equity need exceeds the amount of retained earnings, the firm would borrow to pay the cash dividend sell additional stock to pay the cash dividend pay no cash dividends pay less dividends.

Banks prefer to make short term loans to finance : Banks prefer to make short term loans to finance the following:

Calculate the weighted average cost of capital : Calculate the weighted average cost of capital for Carla Computer Company. The book value of Carla’s outstanding debt is $10 million. Currently, the debt is selling in the market at 110 percent of its book value and is priced to yield 12 percent.

According to the residual theory of dividends : According to the residual theory of dividends, if a firm's equity need exceeds the amount of retained earnings, the firm would borrow to pay the cash dividend sell additional stock to pay the cash dividend pay no cash dividends pay less dividends.

Future dividends will be increasing : Miller Brothers Hardware paid an annual dividend of $1.65 per share last month. Today, the company announced that future dividends will be increasing by 3.60 percent annually. If you require a 9.6 percent rate of return, how much are you willing to p..

Coupon bonds outstanding with current market price : Redesigned Computers has 7 percent coupon bonds outstanding with a current market price of $886.50. The yield to maturity is 8.34 percent and the face value is $1,000. Interest is paid semiannually. How many years is it until this bond matures?

User Account

All Pages