FINA3310_MID04_Revie - standards management of cash conversion cycle(remember always whether we would like a smaller or bigger cash conversion

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Review for midterm 4 2 0 multiple choice, true/false and problems each worth 1 point. Theoretical Cost of capital, sources of long term funds, factors that affect the different sources of capital, flotation costs, cost of retained earnings, WACC Breakeven analysis, types of variable and fixed costs, what affects (or not) the operating breakeven point, relationship between operating and financial leverage, business risk and total leverage Technical insolvency, NWC, goal of working capital management, working capital management, operating cycle, cash conversion cycle, aggressive and conservative financing strategies, the five C’s, what happens when a company relaxes its credit
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Unformatted text preview: standards, management of cash conversion cycle (remember always whether we would like a smaller or bigger cash conversion cycle and based on this and how the cash conversion cycle is calculated you should be able to answer what the company should do to increase or decrease the cycle) Problems • Calculations of after tax cost of debt, cost of preferred, cost of retained earnings, cost of new common stock, break point(s) and calculation of WMCC(s) • Calculations of breakeven units, DOL, DFL • Operating and cash conversion cycles calculations, EOQ calculation...
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This note was uploaded on 06/02/2011 for the course FINA 3310 taught by Professor Staff during the Spring '08 term at Texas A&M University, Corpus Christi.

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