Question 51
Capital budgeting decisions are most commonly evaluated in terms of:
Question 52
In a large company, the person who normally oversees both the treasury and the accounting functions is the:
Question 53
A company hires an investment firm to fully underwrite a new stock issuance. Which of the parties carries the MOST risk?
Question 54
On June 1, a manufacturing company experienced a system failure that lasted more than 24 hours. The company did not have any contingency plans in place and as a result the cash manager was unable to process the following payments: $25,000 to the p-card issuer, $125,000 for weekly payroll, $500,000 for a bond interest payment, $260,000 for the weekly vendor payments and $50,000 for the monthly utilities. The receivables were deposited at the bank; however, the cash manager does not have a way to confirm the amounts. The suppliers are threatening to stop shipments due to the delay in payment and the loss of supplier shipments threatens the company's just-in-time production. What did the manufacturing company trigger as a result of the system failure?
Question 55
A company agrees to pay JPY10,000,000 for a shipment from Japan. At the time the purchase order is placed the exchange rate is JPY168/US$. At the time of payment the exchange rate is JPY163/US$. What is the net effect on the dollar cost of the shipment if the transaction has NOT been hedged?