Which is the following is an assumption of the Baumol model but not of the Miller-Orr model?

1 .The CFO of Lang Co wants to earn a higher return on the company’s cash holdings.Which of the following comparable maturity investments will earn Lang the highest expected return?

A Certficates of deposit B Treasury bills C Commercial paper D Bank deposits

题型: 单选题 提问时间: 2021-08-24

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2 .Which of the following securities has the least amount of default risk?

A Corporate bonds B Treasury bills C Commercial paper D Bills of exchange

题型: 单选题 提问时间: 2021-08-24

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3 .Which of the following best describes the risk associated with the ability to sell a shortterm investment quickly without significant impact on the price?

A Interest rate risk B Purchasing power risk C Financial risk D Liquidity risk

题型: 单选题 提问时间: 2021-08-24

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4 .Which of the following statements about the Miller-Orr cash management model is/are true?(1) The greater the variability in cash flows, the greater is the spread between the upper and lower cash balance limits.(2) When short-term investments are liquidated the firm’s cash balance should return to the lower limit.

A 1 only B 2 only C Both 1 and 2 D Neither 1 nor 2

题型: 单选题 提问时间: 2021-08-24

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5 .A company uses the Baumol cash management model. Cash disbursements are constant at $20,000 each month. Short-term investments yield 5% a year, while cash held in the company’s bank account earns zero interest. Switching costs (that is, for each purchase or sale of short-term investments) are $30 for each transaction.What is the optimal amount (to the nearest $100) to be transferred in each transaction?

A $500 B $1,700 C $4,900 D $17,000

题型: 单选题 提问时间: 2021-08-24

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7 .A supplier offers a 3% discount for payment within 10 days or full payment within 45 days. Assuming a 360-day year what is the annualised cost of not taking the discount?

A 37.11% B 36.00% C 24.74% D 31.81%

题型: 单选题 提问时间: 2021-08-24

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8 .A company has daily sales of $150,000. A debt factor has guaranteed to reduce the company’s receivables collection time by four days for a monthly fee of $2,500. Cash surpluses can be invested in money market deposits yielding 4% per annum.What is the additional annual income/(loss) from using the cash management service?

A $6,000 B $(6,000) C $12,000 D $(12,000)

题型: 单选题 提问时间: 2021-08-24

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9 .Amicable Wireless Co offers customers credit terms of 2% discount for payment within 10 days or full payment within 25 days. 60% of Amicable’s customers take the 2% discount and pay on day 10. The remainder of Amicable’s customers pay on day 30.What is Amicable’s receivables days?

A 16 B 12 C 18 D 20

题型: 单选题 提问时间: 2021-08-24

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10 .The CFO of a company is concerned about the company’s accounts receivable turnover ratio.The company currently offers customers terms of 3% discount for settlement within 10 days or full payment within 30 days.Which of the following strategies would most likely improve the company’s accounts receivable turnover ratio?

A Using invoice discouting B Changing customer terms to a 1% discount for settelement within 10 days C Entering into a factoring agreement with a finance company D Changing customer terms to a 3% discount for settlment within 20 days

题型: 单选题 提问时间: 2021-08-24

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