Companies manage their short-term liabilities

Assignment Help Financial Management

Reference no: EM131356119

What are some strategies and tools that help companies manage their short-term liabilities? Why does it benefit companies to take advantage of these strategies?

Reference no: EM131356119

Questions Cloud

The debt is selling at par value-what is the value of firm : L.A. Clothing has expected earnings before interest and taxes of $2,300, an unlevered cost of capital of 14 percent and a tax rate of 34 percent. The company also has $3,100 of debt that carries a 7 percent coupon. The debt is selling at par value. W..

What is subscription price : Hoobastink Mfg. is considering a rights offer. The company has determined that the ex-rights price will be $88. The current price is $98 per share, and there are 48 million shares outstanding. The rights offer would raise a total of $80 million. What..

What will be the levered value of the equity : The Dance Studio is currently an all-equity firm that has 22,000 shares of stock outstanding with a market price of $27 a share. The current cost of equity is 12 percent and the tax rate is 35 percent. The firm is considering adding $225,000 of debt ..

Leveraged and unleveraged capital structure : Kelso Electric is debating between a leveraged and an unleveraged capital structure. The all equity capital structure would consist of 27,000 shares of stock. The debt and equity option would consist of 16,000 shares of stock plus $270,000 of debt wi..

Companies manage their short-term liabilities : What are some strategies and tools that help companies manage their short-term liabilities? Why does it benefit companies to take advantage of these strategies?

Specific assets of the firm designated as collateral : a bond that does not have specific assets of the firm designated as collateral. investors can force the issuer to repurchase the bond at a price that is pre-specified in the bond indenture. investors can exchange the bond for a set number of shares o..

Cost of debt in dollars and then finding the yen equivalent : The dollar cost of debt for Coval Consulting, a U.S. research firm, is 7.9%. The firm faces a tax rate of 34% on all income, no matter where it is earned. Managers in the firm need to know its yen cost of debt because they are considering a new bond ..

Presented proposal for a project : You are presented a proposal for a project. The project costs $10 million and will produce after-tax cash flows of $2 million at the end of year 1, $4 million at the end of year 2, and $8 million at the end of year 3. What is the NPV of this project ..

Bonds are noncallable-what is the price of the bonds today : KIC, Inc., plans to issue $6 million of bonds with a coupon rate of 9 percent and 15 years to maturity. The current market interest rates on these bonds are 8 percent. If the bonds are noncallable, what is the price of the bonds today? Assume a par v..

User Account

All Pages