Reference no: EM132973838
Questions -
Q1. Among the choices, what is not a source of informal short-term finance?
Accrued wages
Superannuation and taxes
Factoring
Trade credit
Q2. What is the difference of the current ratio from the quick ratio?
The current ratio includes inventories and the quick ratio does not
The current ratio does not include inventories and the quick ratio does
The current ratio includes physical capital and the quick ratio does not
The current ratio does not include physical capital and the quick ratio does
Q3. What metric is not used for measuring the length of the cash cycle?
Acid test days
Accounts receivable days
Accounts payable days
Inventory days
Q4. What is not classified as permanent funding?
Commercial bills
Long-term debt
Leases
Ordinary shares
Q5. What working capital strategies is the most aggressive?
Making greater use of short term finance and maximizing net short term asset
Making greater use of long term finance and minimizing net short term asset
Making greater use of short term finance and minimizing net short term asset
Making greater use of long term finance and maximizing net short term asset
Q6. A promissory note that has a face value of $500,000 has 45 days until maturity. If the relevant yield is 7%, how much is the current price of this promissory note?
Q7. A commercial bill that has a face value of $50,000 has a current price of $49,291. This bill is trading at a yield of 7.5% which necessarily implies a time to maturity of how many days?
Q8. A commercial bill that has a face value of $100,000 has a current price of $97,711. This bill has 95 days to maturity. What is its yield?