Financially for company to acquire working capital asset

Assignment Help Financial Management
Reference no: EM131324133

(a) When does it make sense financially for a company to acquire a working capital asset? (b) For a manufacturer, what makes managing its working capital more time consuming than managing its long-term real capital investments, per dollar invested? (c) Why does a firm need to have liquidity?

Reference no: EM131324133

Questions Cloud

Create a short essay that describes an ethernet frame : Create a short essay (1 to 3 pages) that describes an Ethernet frame. You will need to do some research to understand the construction of an Ethernet frame.
Primary means of asexual reproduction : Discuss why sexual reproduction is so prevalent given that asexual reproduction is so much more efficient. Contrast the three primary means of asexual reproduction.
Backlog of orders when sales exceed expectations : Explain how a company could: Avoid a backlog of orders when sales exceed expectations. Avoid product defects on new products.
What is the forward contract worth at this time : What is the forward contract worth at this time? Explain why this is the correct value of the forward contract in six months even though the contract does not have a liquid market like a futures contract.
Financially for company to acquire working capital asset : When does it make sense financially for a company to acquire a working capital asset? For a manufacturer, what makes managing its working capital more time consuming than managing its long-term real capital investments, per dollar invested?
Determine the value of the futures contract at the opening : On a particular day the S&P 500 futures settlement price was 899.30.- Determine the value of the futures contract at the opening, an instant before the close, and after the close.
Discuss the disability perspectives and global perspectives : Use the Internet to explore some of the popular stereotypes of disability in pop culture, including the disabled person as sinister/evil, pitiable/pathetic, or "supercrip." Compare these recurring stereotypes with Kidd's (2014) discussion in chap..
Law of conservation of energy : According to the law of conservation of energy, energy cannot be created or destroyed, but it can change from one form to another 1. A boy doing a cannonball into the pool. He went from potential to kinetic energy, where did his kinetic energy go?
Show how the futures price is related to the spot price : What is the expected price of wheat on the spot market in December?- Show how the futures price is related to the spot price.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the amount of the net income

A firm has a return on equity of 15%. The debt-equity ratio is 50%. The total asset turnover is 1.25 and the profit margin is 8%. The total equity is $3,200. What is the amount of the net income?

  Financial market investors were risk neutral

Currently, Yields to Maturity on 1-year and 2-year US Treasury securties are .602% and .852%. You can assume that for simplification purposes there are no coupon payments on these bonds and the ytm is entirely due to the difference in face value and ..

  Hopes of becoming an international phenomenon

An entertainment company is interested in launching a new line of clothes under the brand name XYZ in hopes of becoming an international phenomenon. They have surveyed the clothing industry and have identified Style Inc. as the closest pure-play firm..

  What is the yield to call if the call price

Assume a municipal bond has 18 years until maturity and sells for $5640. It has a coupon rate of 5.70% and it can be called in 10 years. What is the yield to call if the call price is 110% of par?

  Calculate standard deviation of expected portfolio returns

Jamie Wong is considering building an investment portfolio containing two stocks, L and M. Stock L will represent 80% of the dollar value of the portfolio, and stock M will account for the other 20%. Calculate the expected value of portfolio returns,..

  How could this affect monetary policy

Suppose that the Fed were less in de pen dent. How could this affect monetary policy? - Suppose that the Fed were more in de pen dent. How could this affect monetary policy?

  Current yield-yield to maturity and capital gains yield

Current yield, capital gains yield, and yield to maturity Hooper Printing Inc. has bonds outstanding with 9 years left to maturity. The bonds have an 9% annual coupon rate and were issued 1 year ago at their par value of $1,000. However, due to chang..

  Company makes snack size bags

A local company makes snack size bags of potato chips. Each day, the company produces batches of 400 snack size bags using a process designed to fill each bag with an average of 2 ounces of potato chips. However, due to imperfect technology, the actu..

  Calculate the appropriate transfer price per pound

Sugarland, Inc., has a division in Indonesia that makes dyestuff in a variety of colors used to dye denim for jeans, and another division in the United States that manufactures denim clothing. The Dyestuff Division incurs manufacturing costs of $2.68..

  Common stock market price per share

KLM Corp. common stock is currently selling for $8 a share. Due to NYSE listing requirements, KLM decided to declare a non-discretionary 2-for-5 reverse stock split. As a result of the split, KLM common stock market price per share will be _____, all..

  Discount rate should you use to evaluate warehouse project

As a consultant to GBH skiwear, you have been ask to compute the appropriate discount rate to use in the evaluation of the purchase of a new warehouse facility. What discount rate should you use to evaluate the warehouse project?

  What are the main weaknesses associated with ratio analysis

What are the main weaknesses associated with ratio analysis - Critically examine the performance of the company using the ratios extracted over the period under consideration

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