The need to hold cash to satisfy the ongoing disbursement and collection activities of the firm as a part of is daily operations is called
B.transaction motive
The need to hold cash to satisfy the ongoing disbursement and collection activities of the firm...
The need to hold cash to satisfy the ongoing disbursement and collection activities of the firm as part of its daily operations is called the: Select one: a. Precautionary motive. b. Speculative motive. c. Float motive. d. Transaction motive.
The CEO of a firm just learned that a small, but highly progressive, competitor is for sale. This is an unexpected opportunity and one that the CEO would like to pursue immediately. The motive behind holding cash for such an event is called the motive Select one: a Reserve b. Precautionary c Speculative d Transaction
1.5 The ________ demand for money arises out of the need to hold money as a medium of exchange. This demand for money is a function of ________. a) precautionary; interest rates b) transactions; national income c) speculative; interest rates d) speculative; national income e) transactions; interest rates
Question No: 1The overall (weighted average) cost of capital is composed of a weighted average of :a)The cost of common equity and the cost of debtb)The cost of common equity and the cost of preferred stockc)The cost of preferred stock and the cost of debtd)The cost of common equity, the cost of preferred stock, and the cost of debtQuestion No: 2Which of the following is a characteristic of preferred stock?a)These stocks have not stated liquidating valueb)Dividends on these stocks can...
no need to explain. just give me the answers please
18) The choice to hold money in the form of cash A) Has no opportunity cost. B) Results in forgone interest. C) Results in increased interest income. D) Results in greater outstanding debt. opportunity cost of holding money in the form of cash to 19) Which of the following causes the opportunity cost of holding money decrease? A) Lower interest rates. B) Higher short-term yields. C) Higher reserve requirement. D)...
Which one of the following is a specific transaction related audit objective? A. Existing cash disbursement transactions are recorded. B. completeness C. accuracy D. cutoff Which one of the following is a specific transaction related audit objective? A. Existing cash disbursement transactions are recorded. B. completeness C. accuracy D. cutoff
Disbursement float is created every time you: Select one: a. Mail a cheque to pay your rent. b. Transfer funds via the internet from your chequing account to your savings account. c. Deposit cash into your chequing account. d. Receive a paycheque and deposit it in your chequing accoun
Disbursement float is created every time you: Select one: a. Transfer funds via the internet from your chequing account to your savings account. b. Mail a cheque to pay your rent. c. Deposit cash into your chequing account d. Receive a paycheque and deposit it in your chequing account.
Float Simon Corporation has daily cash receipts of $65,000. A recent analysis of its collections indicated that customers' payments were in the mail an average of 2.5 days. Once received, the payments are processed in 2.5 days. After payments are deposited, it takes an average of 2 days for these receipts to clear the banking system. a. How much collection float (in days) does the firm currently have? b. If the firm's opportunity cost is 11%, would it be economically...
1) An increase in days sales outstanding (DSO), all other things equal, would ________ the cash conversion period and reflect _________ liquidity. a) increase, increased b) increase, decreased c) decrease, increased d) decrease, decreased 2) Torque Manufacturing forecasts that its production will require 250,000 tons of bauxite over its planning period. Demand for Torque's products is stable over time. Ordering costs amount to an average of $25 per order. Holding costs are estimated at $2 per ton of bauxite. EOQ...