8759_Finance_4412_3rdExam - Finance 4412 Short-Term...

Finance 4412 Short-Term Financial Management
Topic Outline for Final Exam
1. Know the following: the 3 main sources of firm financing; how the effective interest
rate on a bank line of credit is calculated (interest cost, commitment fee, compensating
balance requirement, plus loan covenants that have to be satisfied); the main short-term
investment alternatives for a firm (e.g., sweep accounts, commercial paper, treasury
securities); and how the discount yield is computed (applies to treasury securities,
commercial paper, corporate bonds, etc.).
1a .Three main sources of firm financing are Commercial paper, Bank loans, and
Corporate bonds.