During the 1970s, many companies instituted dividend reinvestment plans (DRIPS). There are many benefits of this plan. What is the one negative aspect?
A distribution business has used several bank loans to finance its expansion plans. After a fire destroyed the company’s facility and inventory, it went out of business due to the loss of revenue during the month it was closed. What type of insurance coverage should the company have had to prevent its demise?
Financing decisions in a budget are used to construct all of the following pro forma financial statement components EXCEPT:
For a defined benefit plan,
A real estate development company has excess cash that it would like to invest in one of its properties:
Property A has shown an ROI of 40%, a residual income of $25,675, and an EVA of $32,678.
Property B has shown an ROI of 45%, a residual income of $27,635, and an EVA of $29,523.
Property C has shown an ROI of 55%, a residual income of $22,658, and an EVA of $30,678.
Property D has shown an ROI of 52%, a residual income of $19,675, and an EVA of $31,523.
In which property should the company invest?
When a short-term loan is paid with a lump sum payment and the payment includes both interest and principal, the loan is often referred to as a:
In terms of capital structure, lease financing normally has the same effect as:
Which of the following BEST describes an advantage of a company going public?
The treasury management department of a company hires a consulting firm to provide research on how other companies in the industry have structured their treasury operations. This is an example of which practice?
A company is based in the United States and has an operating subsidiary in Germany. With a stable U.S. dollar and a depreciating euro, the company's cash manager may elect to:
What is the MOST appropriate rate used as the discount rate in calculating NPV?
Which of the following are important uses of variance analysis in comparing actual cash flows with projected cash flows?
I. Identifying unanticipated changes in inventory
II. Enhancing short-term investment income
III. Validating a capital budget
IV. Identifying delays in accounts receivable collections
The goal of a successful investor relations program is to ensure:
Future treasury operations will be affected MOST significantly by consolidation of which of the following?
What must be measured and monitored to ensure that a company has adequate liquidity?
A company hires an investment firm to fully underwrite a new stock issuance. Which of the parties carries the MOST risk?
XYZ Company is considering selling treasury stock but is concerned about the amount of capital it will raise given the current high volatility of the stock market. What is the BEST strategy a firm can employ to reduce its uncertainty?
Company XYZ is not sure which direction interest rates are headed. Which of the following would be MOST suitable?
In which of the following instances does the clientele effect come into play?
Which of the following is NOT a key area to consider when establishing treasury policies?
