Quiz Ch 19 – Aligning Financing with Asset Life
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
What describes the practice of matching the duration of financing with the life of the asset being financed in a firm?
What describes the practice of matching the duration of financing with the life of the asset being financed in a firm?
When is a toy store, delaying payment for toy purchases and stocking up in October for a December sales surge, most likely to experience negative operating cash flow?
Which statement is inaccurate regarding short-term financial planning?
Which scenario is least likely for a firm consistently extending its payables?
In terms of liquidity, which asset is likely to be the least liquid?
What kind of firm is typically considered when it employs a relaxed approach to its total capital requirement?
What is the expected behavior for a firm employing a relaxed long-versus short-term borrowing strategy at the height of sales demand?
What is the total capital requirement typically for most profitable firms?
What happens when a firm’s cash outflows exceed its cash inflows during an accounting period?
How is a firm’s permanent working capital defined?