Business Finance - Study Mode
[#381] Our firm has a philosophy that is analogous to hedging (maturity matching) approach. Which of the following is the most appropriate non-spontaneous form for financing the excess seasonal current asset needs?
Correct Answer
(B) Currency notes
[#382] A firm with high operating leverage has
Correct Answer
(C) High fixed cost in its production process
[#383] Once we define working capital as current assets, it can be further classified according to
Correct Answer
(D) Components and time
[#384] Indicate the incorrect statement (i) Credit risk is a loss on account of a default of repayment of a loan. (ii) Liquidity risk is the risk on account of the mismatches of cash inflow and outflow in a firm. (iii) Basic risk is the risk in a firm owing to the differences in the index to which financial assets and liabilities are tied up. (iv) Hedging risk for a long position is accomplished by taking a short position and vice versa.
Correct Answer
(D) All of the above
[#385] Which technique is common used to estimate the cash flow in multinational capital budgeting?
Correct Answer
(A) Net present value method