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?
The need for Anam Motors to retain cash reserves to fund its operations during a period of tightened credit markets is an example of which motive for holding cash?
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?
What is the term used to describe the routine of transferring excess funds from branch bank accounts to the primary bank of Arenas Holding Company located near the home office on a daily basis?
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 type of account is used in cash management systems where funds are deposited in an amount exactly equal to the value of the checks presented for payment that day?
The cash used as a change for customers who pay in cash is an example of which motive for holding cash?