Generally__________________ is financed by short-term financing. Seasonal working capital Permanent working capital Plant and machinery Land
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Generally__________________ is financed by short-term financing.
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Seasonal working capital
Permanent working capital
Plant and machinery
Land
Homework Answers
Generally, Seasonal Working Capital is financed by short-term financing.
Explanation:
Permanent working capital, plant and machinery and land are financed with long term finance. The is called as matching of maturities of assets and liabilities.
Add Answer to:
Generally__________________ is financed by short-term
financing.
Seasonal working capital
Permanent working capital
Plant and machinery
Land
Positive working capital for a firm implies that current assets are partially financed by long-term financing...
Positive working capital for a firm implies that current assets are partially financed by long-term financing fixed assets are partially financed by current liabilities current assets are completely financed by current liabilities firm has no short-term debt
Capital assets are usually financed with Multiple Choice short-term funds. long-term funds. permanent funds self-liquidating funds
Capital assets are usually financed with Multiple Choice short-term funds. long-term funds. permanent funds self-liquidating funds
Paymaster Enterprises has arranged to finance its seasonal? working-capital needs with a? short-term bank loan. The...
Paymaster Enterprises has arranged to finance its seasonal? working-capital needs with a? short-term bank loan. The loan will carry a rate of 14 percent per annum with interest paid in advance? (discounted). In? addition, Paymaster must maintain a minimum demand deposit with the bank of 11 percent of the loan balance throughout the term of the loan. If Paymaster plans to borrow $90,000 for a period of 4 ?months, what is the annualized cost of the bank? loan? (Round to...
Aa Aa 12. Short-term financing Why use short-term financing? Cash flows from operations may not be sufficient for a fir...
Aa Aa 12. Short-term financing Why use short-term financing? Cash flows from operations may not be sufficient for a firm to keep up with growth-related financing needs, or the firm may not be able to always generate enough cash flow to maintain a surplus of cash. Firms prefer to borrow now to fulfill their capital requirements through means of short-term financing or long-term financing. Both methods have their advantages and disadvantages. The following statement identifies a possible characteristic of short-term...
Question 17 (0.2 points) Which of the following statements about short-term funding strategy is true? All...
Question 17 (0.2 points) Which of the following statements about short-term funding strategy is true? All seasonal working capital needs and a portion of permanent working capital and fixed assets are funded with short-term debt. The downside to this strategy is that a portion of a firm's long-term assets must be periodically refinanced over their working lives. It can take advantage of an upward-sloping yield curve and lower a firm's overall cost of funding. O All of these
Certain financing plans are termed conservative when O risk is increased O working capital is relatively...
Certain financing plans are termed conservative when O risk is increased O working capital is relatively high current assets are relatively low short-term financing is used frequently
12. Sources of short-term financing Aa Aa Short-term credit, or short-term financing, is any liability that...
12. Sources of short-term financing Aa Aa Short-term credit, or short-term financing, is any liability that is scheduled for repayment within one year. Among the sources of short-term funds are banks, suppliers, securities firms, and insurance companies. Their securities (or obligations) can take the form of bank loans, trade credit, commercial paper, and accruals. Some types of short-term financing are easier to obtain and manage than others. Financial managers should consider the costs of the various sources of financing as...
Kelly & Assoc. is developing an asset financing plan. Kelly has $500,000 in current assets, of...
Kelly & Assoc. is developing an asset financing plan. Kelly has $500,000 in current assets, of which 15% are permanent, and $700,000 in capital assets. The current long-term rate is 11%, and the current short-term rate is 8.5%. Kelly's tax rate is 40%. a) Construct three financing plans— the first: perfectly hedged, the second: conservative, with 80% of assets financed by long-term sources, and the third: aggressive, with only 60% of assets financed by long-term sources. b) If Kelly's earnings...
Temporary current assets are those assets that are Multiple Choice Capital assets. Semi-permanent. Self-liquidating Permanent assets...
Temporary current assets are those assets that are Multiple Choice Capital assets. Semi-permanent. Self-liquidating Permanent assets When retained earnings are not sufficient to cover the need for investment in current assets, firms seek to use all of the following methods except: Multiple Choice trade credit bank loans short-term securities. selling off inventories We were unable to transcribe this imageUsually yield curves arebut during peak periods of economic expansion yield curves may be Multiple Choice upward sloping, downward sloping downward sloping:...
What are sources of short-term financing? Check all that apply: Short-term bank loans Accounts receivable financing...
What are sources of short-term financing? Check all that apply: Short-term bank loans Accounts receivable financing Inventory financing Accounts payable Commercial paper
Capital assets are usually financed with Multiple Choice short-term funds. long-term funds. permanent funds self-liquidating funds
Aa Aa 12. Short-term financing Why use short-term financing? Cash flows from operations may not be sufficient for a firm to keep up with growth-related financing needs, or the firm may not be able to always generate enough cash flow to maintain a surplus of cash. Firms prefer to borrow now to fulfill their capital requirements through means of short-term financing or long-term financing. Both methods have their advantages and disadvantages. The following statement identifies a possible characteristic of short-term...
Question 17 (0.2 points) Which of the following statements about short-term funding strategy is true? All seasonal working capital needs and a portion of permanent working capital and fixed assets are funded with short-term debt. The downside to this strategy is that a portion of a firm's long-term assets must be periodically refinanced over their working lives. It can take advantage of an upward-sloping yield curve and lower a firm's overall cost of funding. O All of these
Certain financing plans are termed conservative when O risk is increased O working capital is relatively high current assets are relatively low short-term financing is used frequently
12. Sources of short-term financing Aa Aa Short-term credit, or short-term financing, is any liability that is scheduled for repayment within one year. Among the sources of short-term funds are banks, suppliers, securities firms, and insurance companies. Their securities (or obligations) can take the form of bank loans, trade credit, commercial paper, and accruals. Some types of short-term financing are easier to obtain and manage than others. Financial managers should consider the costs of the various sources of financing as...
Temporary current assets are those assets that are Multiple Choice Capital assets. Semi-permanent. Self-liquidating Permanent assets When retained earnings are not sufficient to cover the need for investment in current assets, firms seek to use all of the following methods except: Multiple Choice trade credit bank loans short-term securities. selling off inventories We were unable to transcribe this imageUsually yield curves arebut during peak periods of economic expansion yield curves may be Multiple Choice upward sloping, downward sloping downward sloping:...
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