ENG 111 Winter 2014 HW1 ANSWERS

A financial manager makes various types of decisions

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: re bound to compare them, we need to take into account that sizes of these companies are quite different. Therefore, absolute comparison of numbers may not be very informative. For cash holdings comparison for example, it is better to compare the percentage of cash holdings relative to the total assets each company has. Beyond this, we need to make sure that the comparison numbers belong to the same period. Companies are operating in the same country so that the numbers are produced employing the same accounting rules. 2. A Financial Manager makes various types of decisions related to different aspects of a company’s operations. Determine whether each of the following decisions is a Capital Budgeting, Capital Structure or a Net Working Capital management decision. Note that each case may aff...
View Full Document

This note was uploaded on 01/16/2014 for the course ENGR 111 taught by Professor King during the Winter '09 term at UCLA.

Ask a homework question - tutors are online