Quiz Ch 19 – T/F Development of Short-Term Financing Plans
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: Short-term financing plans are typically crafted through a trial-and-error process.
True or false: Short-term financing plans are typically crafted through a trial-and-error process.
True or false: Selling $5 million of marketable securities results in a $5 million cash increase.
True or false: When a firm sells marketable securities, its working capital increases, but its cash holdings remain unchanged.
True or false: Companies extend their payables by presenting customers with more favorable payment terms.
True or false: Firms with exceptionally high cash reserves frequently utilize tax havens for their cash storage.
True or false: Numerous high-tech companies maintain substantial holdings of marketable securities.
True or false: Cash reserves decrease when a company procures raw materials on credit.
True or false: Lowering inventory levels results in a cash source.
True or false: Greater liquidity is often associated with firms that maintain substantial holdings of current assets.
True or false: Evidence indicates that investors attach substantial value to liquidity, particularly in the context of companies with growth prospects.