Principles of Managerial Finance
Principles of Managerial Finance
17th Edition
ISBN: 9781323419656
Author: Gitman
Publisher: PEARSON
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Chapter 1.2, Problem 1.10RQ
Summary Introduction

To discuss: The role of corporate ethics guidelines and policies.

Introduction:

Corporate is a particular legal entity that separates from its owners. In this form of business where the owners specify certain governing rules to undertake the business in a contract knows as the articles of incorporation.

Ethics guidelines and policies are standards or norms for the performance of the business. It is technically termed as business ethics.

Summary Introduction

To discuss: The relationship between ethics and share price.

Introduction:

The share price is a price of a share on the number of saleable stock of a firm.

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Ned's Co. has an average collection period of 45 days and an operating cycle of 130 days. It has a policy of keeping at least $10 on hand as a minimum cash balance, and has a beginning cash balance for the first quarter of $20. Beginning receivables for the quarter amount to $35. Sales for the first and second quarters are expected to be $110 and $125, respectively, while purchases amount to 80% of the next quarter's forecast sales. The accounts payable period is 90 days. What are the cash disbursements for the first quarter?   Question 4 options:   $92   $88   $76   $100   $110
Liberal credit terms for customers is associated with a restrictive short-term financial policy.   Question 3 options:   True   False
An accounts payable period decrease would increase the length of a firm's cash cycle. Consider each in isolation.   Question 6 options:   True   False
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