Which of the following statements is most consistent

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15.  Which of the following statements is most consistent with efficient inventory management? The firm has a  A) below average inventory turnover ratio.  B) low incidence of production schedule disruptions.  C) below average total assets turnover ratio.  D) relatively high current ratio.  E) relatively low DSO.  16.  Operating leases often have terms that include  17.  An increase in the debt ratio will generally have no effect on which of these items? 
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18.  Company A can issue floating-rate debt at LIBOR + 1%, and it can issue fixed rate debt at 9%. Company B  can issue floating-rate debt at LIBOR + 1.5%, and it can issue fixed-rate debt at 9.4%. Suppose A issues  floating-rate debt and B issues fixed-rate debt, after which they engage in the following swap: A will make a  fixed 7.95% payment to B, and B will make a floating-rate payment equal to LIBOR to A. What are the  resulting net payments of A and B?  19.  Which of the following statements is most CORRECT?  A) One advantage of forward contracts is that they are default free.  B) Futures contracts generally trade on an organized exchange and are marked to market daily.  C) Goods are never delivered under forward contracts, but are almost always delivered under futures contracts.  D) There are futures contracts for currencies but no forward contracts for currencies.  E) Futures contracts don’t have any margin requirements but forward contracts do. 
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  • Spring '11
  • Abner
  • Debt, forward contracts, optimal capital budget, higher Price/Earnings ratio

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