User Account

All Pages

Why do think cash balances among non-financial companies

Assignment Help Accounting Basics
Reference no: EM132759379

Consider the following two statements from a June 2016 report:

  • Cash Balance Reaches New High: The S&P 500 (Ex-Financials) cash and short-term investments balance was $1.45 trillion at the end of the first quarter (Feb-April), which represented a 5.7% increase year-over-year and a 1% jump from Q4 2015. The balance in Q1 represented the largest cash total in at least ten years.
  • Cash to Debt Ratio Falls to Lowest Level since Q2 2009: The cash to debt ratio for the S&P 500 (Ex-Financials) index fell 3.8% to 34.7% in Q1, which marked the lowest ratio since Q2 2009.

Problem 1: Why do you think cash balances among non-financial companies listed on the S&P are so high? Should they be higher, given the reduced cash coverage of outstanding debt?

Reference no: EM132759379

Questions Cloud

Brief memo for the payroll manager with recommendation : Sample of a brief memo for the Payroll Manager with your recommendation for a new process. The payroll department would like to see more structured nt
Applying for the position of book keeping : You are a fresh graduate applying for the position of book keeping at a company called "Dream Enterprise". Due to the current pandemic you cannot physically
Improving police-community relations : You are the newly-appointed police chief in a medium size city of 100,000 residents. Your police department has 100 sworn officers.
Why does politics have such an important impact on strategy : Why does politics have such an important impact on strategy in the healthcare sector and Why were healthcare organizations merging under the ACA?
Why do think cash balances among non-financial companies : Why do you think cash balances among non-financial companies listed on the S&P are so high? Should they be higher, given the reduced cash coverage
Prepare professional policy memo to criminal justice : Prepare a professional policy memo to the criminal justice committee outlining the actions to be taken, funding sources, and implementation challenges
Determine is true about t accounts : Find Which is true about T accounts? The left side of a T account is called the debit side. / The left side of a T account is called the credit side
Administrative staff of a company : You are a part of the administrative staff of a company and your company will close down the following day (January 25, 2023), for maintenance
How much interest income must betty report on return : Betty earned interest of $430 on a saving,The $90 was withdrawn, but the $430 was left in the savings. How much interest income must Betty report on her return?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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