Corporate Finance Study Set 12

Business

Quiz 28 :

Cash Management

Quiz 28 :

Cash Management

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Examples of cash disbursements do not include:
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E

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On an average day, a company writes checks totaling $1,500. These checks take 7 days to clear. The company receives checks totaling $1,800. These checks take 4 days to clear. The cost of debt is 9%. If the average daily float is $3,300, what is the net present value per day?
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D

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Financial managers broaden their definition of cash to include:
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A common cash management technique used to speed up collections from a customer's bank account to a retailer's bank account is:
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A financial manager should be concerned about bank cash and net float; which is:
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Firms would need to hold zero cash when:
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The difference between bank cash and book cash is called:
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On an average day, a company writes checks totaling $1,500. These checks take 7 days to clear. The company receives checks totaling $1,800. These checks take 4 days to clear. The cost of debt is 9%. What is the firm's net float?
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The BM firm expects a total need of $12,500 over the next 3 months. They have a beginning cash balance of $1500, and cash is replenished when it hits zero. The fixed cost of selling securities to replenish cash balances is $3.50. The interest rate on marketable securities is 8% per annum. There is a constant rate of cash disbursement and no cash receipts during the month. On an average day, a company writes checks totaling $1,500. These checks take 7 days to clear. The company receives checks totaling $1,800. These checks take 4 days to clear. The cost of debt is 9%. What is the firm's disbursement float?
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The target cash balance is reached when:
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On an average day, a company writes checks totaling $1,500. These checks take 7 days to clear. The company receives checks totaling $1,800. These checks take 4 days to clear. The cost of debt is 9%. What is the firm's collection float?
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Which of the following is not true of float management?
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Collection float increases book cash immediately but:
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Checks written by the firm are said to generate:
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If a firm has achieved its target cash balance the net present value is:
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A sensible cash management policy would be to:
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Most large firms hold a cash balance greater than most models imply because:
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When a firm writes a check, there is an immediate decrease in _____ cash, but no immediate change in _____ cash.
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The most common cash management technique used to speed up collections is:
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By getting closer to the source of payment, lockboxes can be used to reduce:
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