In-Class Exercises

In-Class Exercises - Attractiveness of firms commercial...

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Problem #1 a. Problem #1 b. In-Class Exercises 1
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What Is Liquidity? 2 Elements of liquidity include several dimensions: Time The amount of time to convert an asset to cash. The quicker, the more liquid the firm. Amount The firm’s capacity to meet its ST obligations. Cost / Loss of Value Assets can be quickly converted to cash with
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Newer Approaches to Liquidity 3 Traditional ratio analysis has proved an ineffective method for measuring and managing liquidity. Analysis should include: Amount and trend of internal cash flow. Aggregate available credit lines.
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Unformatted text preview: Attractiveness of firms commercial paper, bonds, and stock to investors. Statement of Cash Flows 4 The financial statement, the Statement of Cash Flows , provides information on cash receipts and disbursements during a specific time-frame. It is organized with cash flow data in three areas: Operations 5 The Statement of Cash Flows is most useful to external interested parties (banks, analysts, investors, etc.). It shows period to period data, but does not show daily variations in the cash cycle....
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This note was uploaded on 01/24/2012 for the course FIN 4260 taught by Professor Victorwakeling during the Spring '12 term at Kennesaw.

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In-Class Exercises - Attractiveness of firms commercial...

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