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206
Subject
Finance
Date
Nov 24, 2024
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What type of arrangement exists when creditors work directly with management to establish a plan for
returning the organization to a sound financial basis, such as by restructuring some of the debt? -
✔✔
Informal bankruptcy
Which of the following occurs when receivables matching is used in conjunction with consolidated
remittance processing (CRP)? -
✔✔
The vendor applies the payment to the correct invoice and updates
the A/R record
A multinational corporation sets up a relationship with a single bank to process its multiple accounts
from that bank. Interest is calculated across all accounts (with negative balances offsetting positive
balances from other accounts), but funds remain in their original accounts. What is this practice called? -
✔✔
Notional pooling
A small company is considering making an initial public offering. Which of the following will most likely
be an advantage to the company of going public? -
✔✔
Owners can increase their personal
diversification
Company XYZ wishes to start offering direct deposit to its employees. Which of the following methods
best describes the process inviting providers to bid on the costs to provide direct deposit? -
✔✔
RFQ
A company with a capital structure of 60% debt and 40% equity wants to calculate its weighted average
cost of capital (WACC). The company's cost of debt is 11.0% and its cost of equity is 18.0%, while its
marginal tax rate is 32.0%. What is the company's WACC? (Rounded to the nearest hundredth of a
percent) -
✔✔
11.69%
Which of the following is generally true of in-house versus outsourced management of a short-term
investment portfolio? -
✔✔
Outsourced portfolios generally have better access to securities research
Bond A is a 10-year negotiable fixed-rate bond with annual interest payments and repayment of
principal at maturity. Bond B is identical except that it has semiannual interest payments. Which of the
following is true of both of these bonds?
I. Bonds A and B have the same duration
II. Bonds A and B decline in value when interest rates rise
III. An investor purchasing either bond at a discount recaptures this discount at maturity
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Related Questions
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