Primary concerns should your firm make change to credit

Assignment Help Financial Management
Reference no: EM13728676

In order to increase sales, the sales manager of your firm is proposing to offer 90 day credit terms rather than 60 day credit terms to customers. As a financial manager which of the following would be one of your primary concerns should your firm make this change to credit terms?

Select one:

a. How you would invest excess cash that is created by the change to credit terms.

b. As receivable collections begin to slow, how much of a negative impact will this change have on the firm's cash on hand?

c. This change would have no effect on the firm's cash position; therefore there is no need to be concerned.

d. The effect this change would have on taxable income.

You are a financial manager for a large Fortune 500 firm, typically the most important financial market for you to follow would be:

Select one:

a. The Money Market

b. The Stock Market

c. The Treasury Market

d. The IPO Market

Ford Motor Company plans to sell stock to build a new plant, the sale of stock would be considered a(n):

a. Primary market transaction

b. Secondary market transaction

c. Initial Public Offering

d. Exchange of physical assets.

Reference no: EM13728676

Questions Cloud

Common stock is currently selling : Greens Company’s common stock is currently selling for $66 per share. Last year, the company paid dividends of $3.45 per share The projected growth rate of dividends for this stock is 3.56 percent. Which rate of return does the investor expect to rec..
How much do you have to pay each month : Suppose by the time you graduate your student loan will accumulate to $33,000, the national average for college graduates of 2014. If you plan to pay back the loan in 5 years with equal monthly payment, and assume the interest rate is 6% compounded m..
Discuss three key strategies that volkswagen is using : Using the online system with Lexis-Nexis, EBSCO and other business databases, identify and discuss three key strategies that Volkswagen is using to compete in China
How you understand role the of professional nurse in health : How has your understanding of the role of the professional nurse in health assessment changed as a result of taking this course?
Primary concerns should your firm make change to credit : In order to increase sales, the sales manager of your firm is proposing to offer 90 day credit terms rather than 60 day credit terms to customers. As a financial manager which of the following would be one of your primary concerns should your firm ma..
Visual interpretation : Create a visual of the data you collected from the questionnaires - You need to take the data you collected and transfer it into an appropriate visual for your reader
Discuss the market segmentation of company : Write a white paper on a company of your choice and discuss the market segmentation within that industry along with the target market for the company and the selection process for that target market
What effect has nafta had on trade among its member nations : What effect has NAFTA had on trade among its member nations?
Create a swot analysis for the company : Create a SWOT analysis for the company to determine its major strengths, weaknesses, opportunities, and threats

Reviews

Write a Review

Financial Management Questions & Answers

  An investment offers a total return

An investment offers a total return of 14 percent over the coming year. Bill Bernanke thinks the total real return on this investment will be only 8.6 percent.

  Overview of financial management

Overview of Financial Management

  What rate of growth must be expected for spencer

Spencer Supplies stock is currently selling for $60 per share. The firm is expected to earn $5.10 per share this year and to pay a year-end dividend of $3.70.

  Interest or discount rate with interest compounded annually

What is the present value of $7,800 received 13 years from now using a 16% interest or discount rate, with interest compounded annually?

  Perform financial analysis of a public company

How does the above relate to the market that the business is in, i.e. need to perform competitive and economic analysis and macro economic analysis is company's sales cyclical or counter cyclical for example

  Growing rapidly and it currently retains all of its earnings

MCC is growing rapidly and it currently retains all of its earnings (no dividends). If is expected that MCC will begin paying a $1.00 dividend in year 3. The year 4 dividend will grow by 50% and the year 5 dividend will also increase by 50%. Thereaft..

  Why is developing a financial plan an important part of the

nbsp1. library research - provide 2 companies that have differentiated between cash and profits. how did the approach

  What is the ex-rights price and What is the value of a right

Again, Inc., is proposing a rights offering. Presently, there are 490,000 shares outstanding at $75 each. There will be 80,000 new shares offered at $71 each. What is the new market value of the company? How many rights are associated with one of the..

  How big should abebis equal investments be

Abebi, who has just celebrated her 28th birthday, will retire on her 58th birthday, and she has just set up a retirement plan to pay her income starting on her retirement day, and to continue paying for 19 more years. Abebi's goal is to receive $110,..

  Calculate the sales volume in dollars

Big Chill, Inc. sells portable dehumidifier units at $187. Unit variable costs are $111. Fixed costs are $4,175,000. Management has set a profit objective of 15.2% return on sales. Calculate the sales volume in dollars that will provide a 15.2% retur..

  Provide financial planning advice to the clients

Provide financial planning advice in the case study.

  Calculate the yield using a geometric average

One-year Treasury securities yield 3.5%. The market anticipates that 1 year from now, 1-year Treasury securities will yield 6.45%. If the pure expectations theory is correct, what is the yield today for 2-year Treasury securities? Calculate the yield..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd