Increase in net working capital other things held constant

Assignment Help Financial Management

Reference no: EM131336169

Which of the following will cause an increase in net working capital, other things held constant?

a. A cash dividend is declared and paid.

b. Merchandise is sold at a profit, but the sale is on credit.

c. Long-term bonds are retired with the proceeds of a preferred stock issue.

d. Missing inventory is written off against retained earnings.

e. Cash is used to buy marketable securities.

Reference no: EM131336169

Questions Cloud

What is the minimum number of payments per month : The Williams Company can convert to ACH disbursing for $20000. Williams averages a perpetual 500 checks per month and has an annual cost of capital of 10%. If ACH disbursing will save Williams 20 cents per payment. a. What is the NPV of the decision ..

Whats the profit of the bearish put spread when stock price : Whats the profit of the "Bearish put spread" when stock price is$25, 30, 35, 40, 45, 50, 55, 60, 65 respectively?

Lead firms to better develop and leverage their capabilities : How do changes in the rules of the game for global and regional economic integration, as emphasized by the institution based view lead firms to better develop and leverage their capabilities? How do firms around the world such as Bombardier capitaliz..

Compute new price of the bond : Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 25-year life when issued and the annual interest payment was then 14 percent. Assume that five years later the inflation premium is only 3 percent and is appropri..

Increase in net working capital other things held constant : Which of the following will cause an increase in net working capital, other things held constant?

One advantage of the residual dividend policy : A lockbox plan is. One advantage of the residual dividend policy is that it leads to a stable dividend payout, which investors like. An increase in the stock price when a company decreases its dividend is consistent with signaling theory as postulate..

Explain the accounting for related unrealized holding gain : A marketable security is initially classified as a trading security, or an available-for-sale security, or a held-to-maturity debt security. Subsequently, a security can be transferred between categories. Explain the accounting for a related unrealiz..

Calculate minimum transfer balance required : The cash manager of Verematic, Inc., is contemplating the choice between using a wire transfer and an EDT. He estimates that his investment opportunity rate is 9%. The bank's ECR is currently 4%, and the reserve requirement is 12%. Calculate the mini..

What are the effects on cash flow : A project currently generates sales of $7 million, variable costs equal 60% of sales, and fixed costs are $1.4 million. The firm’s tax rate is 40%. Assume all sales and expenses are cash items. What are the effects on cash flow, if sales increase fro..

User Account

All Pages