Incorrect questions Flashcards
(56 cards)
what is business angel factoring
private individuals or groups of individuals investing directly into a small business
is supply chain finance considered financial debt
no
what does supply chain finance enable small businesses to do
raise finance at a lower interest rate than would normally be available to it
what else is supply chain finance named
reverse factoring
what technique is most important to be high to maximise shareholder wealth
NPV
advs of IRR over investment appraisal
takes into account time value of money
considers whole project
how would an increase of cost of capital affect NPV
it would decrease
how would an increase of cost of capital affect IRR
no effect
what is the formula for total shareholder return
(p1-p0+d1)/p0
where p1 = share price this year
p0- share price in the previous year
d1= dividend per share
what is the reverse yield gap
yields on share being lower than on low risk debt
what does disintermediation mean
borrowers dealing with lenders directly
what type of instrument is a certificate of desposit
money market
are treasury bills bought and sold on a discount basis
yes
what is a secondary market
securities are bought and sold by investors
who are money markets mainly used by
large companies
is money market lending securitised
yes
if a government has a macroeconomic policy what 2 things will they do
increase public expenditure
decrease tax
2 main goals of macro economic policy
low and stable inflation
balance between exports and imports
does sales increase as working capital does
yes
what will an increase in the cash operating cycle do
decrease profitability
what kind of factoring provides insurance against bad debts
factoring with no recourse
does factoring with recourse help with bad debts
no
how do you calculate annual holding costs
average inventory / 2 * holding cost per unit
how do you calculate average inventory
monthly order / 2
