FIN200 Week 6 DQ 2

FIN200 Week 6 DQ 2 - Use the Wall Street Journal (

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Unformatted text preview: Use the Wall Street Journal ( ) or some other financial publication to find the going interest rates for marketable securities listed in Ch. 7 of Foundations of Financial Management. Which security would you choose for a short-term investment? How does that security assist a company in meeting its cash management goals? . The answer to this question may well depend upon the phase of the business cycle at the time the question is considered. In normal times, small certificates of deposits and savings accounts may prove adequate. However, in a tight money period, wide differentials may be established between the various instruments and maximum returns may be found in Treasury bills, large certificates of deposits, commercial paper, and money market funds. Securities help attain the companies goal of safety and liquidity to meet the transaction needs of the firm and for...
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This note was uploaded on 01/04/2011 for the course FIN 200 taught by Professor Williams during the Spring '08 term at University of Phoenix.

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