Finance theory based questions

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1. What are the two major sources of spontaneous short-term financing for a firm?

2. How do their balances behave relative to the firm's sales?

3. Is there a cost associated with taking a cash discount?

4. Is there any cost associated with giving up a cash discount?

5. How do short-term borrowing costs affect the cash discount decision?

6. What is "stretching accounts payable"?

7. What effect does this action have on the cost of giving up a cash discount?

8. How is the prime rate of interest relevant to the cost of short-term bank borrowing?

9. What is a floating-rate loan?

10. What does a firm have to do, legally before "going public"?

 

Reference no: EM1357983

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