Ended on Aug 16, 2020. Previous Practice: Risk and Return MCQs. (7 marks) Ended on Jul 24, 2020. What will be the pay-back period? d) the market price per share of the firm's common stock. MCQs 1-10. Hindi FM and Economics for Finance. MCQ on Financial Management 1. Chapter 16: Working capital management: Multiple-choice questions: Multiple-choice questions Try the multiple choice questions below to test your knowledge of this chapter. "Shareholder wealth" in a firm is represented by: a) the number of people employed in the firm. b) the book value of the firm's assets less the book value of its liabilities c) the amount of salary paid to its employees. Assume that there are 365 days in each year. ... Material management … A project costs $16,000.The estimated annual cash inflows during its 3 year life are $8,000, $7,000 and $6,000 respectively. INTRODUCTION 1.1 A CHANGING BUSINESS ENVIRONMENT The availability of money was high in the years prior to the financial crisis of 2008. Permanent working capital financed with long-term liabilities. 6 1. 2. Short-term assets financed with equity. Optimal management of working capital is an important financial decision and contributes positively to the value creation of business. Try Working Capital Management Test with MCQ on debt equity ratio, Conservative working capital policy and Aggressive working capital policy Now! Next Practice: MCQs . John Trading Co. wants you to prepare a working capital forecast from the following: Issued Share Capital: $4,00,000 8% Deb. Using Cash Forecasting Method Problem. Quick Revision of Working Capital Management and MCQ 4. WCM Working Capital Management . Companies did not have to look far for capital to fund expansions and thus, goals to increase sales were common. Discussion of Ratio Analysis Chapter Along with MCQ`s. a trade-off between profitability and risk. : $1,50,000 The fixed Assets are … 5. In deciding the appropriate level of current assets for the firm, management is confronted with. Plot Co finances working capital with short-term finance costing 5% per year. CA Ankit Bajaj. (Kaiser & Young, 2009; Ivashina & Scharfstein, 2009) Ended on Jul 30, 2020. Required: Identify the objectives of working capital management and discuss the central role of working capital management in financial management. Capital Budgeting MCQs. Working capital management questions and answers on topics like types & primary objective of working capital management, working capital cycle, factors affect working capital requirement, investment & signinficance of working capital. Total Working Capital Required = $79,615. Hindi FM and Economics for Finance. All assets financed with a 50 percent equity, 50 percent long-term debt mixture. 1. Once you have completed the test, click on 'Submit Answers for Grading' to get your results. Working Capital Management Concepts and MCQs. 3. CA Ankit Bajaj. 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