Which of the following can be categorized as Short term sources of finance ?i Equity Sharesii Trade Creditiii Debentureiv Money Market Instruments a. Only Equity Shares b. Both Equity Shares and Debentures c. Only Money Market Instruments d. Both Money Market Instruments and Trade Credit

Which of the following can be categorized as Short term sources of finance ?i Equity Sharesii Trade Creditiii Debentureiv Money Market Instruments a. Only Equity Shares b. Both Equity Shares and Debentures c. Only Money Market Instruments d. Both Money Market Instruments and Trade Credit

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 18QTD

See similar textbooks

Related questions

Q: (a. investment banking b. insurance firms c. commercial banking d. mutual fund e. pension fund)…

A: The correct answer is commercial banking as banks are the transformer of short term liabilities to…

Q: Determine if the following, if stocks or bonds 1. Its buyers receive return called dividend. a.…

A: Note: As per our guidelines, only the first three subparts will be answered 1. A dividend is a…

Q: What are the relative advantages of equity versus debt financing?

A: Equity financing is selling a stake in your firm in return for a monetary investment. In contrast to…

Q: Stocks 2. Bonds 3. Real estate

A: The stock simply means shares. The ownership of a company is divided among shares. A single share…

Q: 17) Which one of the following is NOT a 'Money Market Instrument'? Select one: O a. Treasury Bills O…

A: Financial instruments which are have expiry of less than 1 year, are categories as money market…

Q: Which one of the following is referred as debt finance? O a. Purchase of T-Bills. b. Sale of bonds.…

A: Debt financing is when a company raises money with the use of debt instruments.

Q: Retained Earnings ii) Common Shares iii) Unrealised Gains iv) Mezzanine Debt a. ii only b.…

A: An unrealised gain is a theoretical profit or deficit that exists on balance, resulting from an…

Q: Which of the following is an example of long term instruments? (select all that apply) a. Asset…

A: Long Term Instruments are the instruments which are issues for the longer time period, generally…

Q: Rank bonds, common stock, and preferred stock with regard to two factors the possibility of a…

A: Common stock is the stock which does not have preferential right of dividend and which are repaid by…

Q: 1) The capital market consist of : A. Treasury bill B. Certificate of deposit C. Purchases agreement…

A: Since more than three sub parts are posted at a time, the answer for first three questions is only…

Q: What does each of the following definitions refer to: The specific mixture of long-term debt and…

A: Question is related to concept of financial key term to explain specific concept.

Q: Which of the following is an example of a capital market instrument? Money market mutual funds.…

A: Capital markets are where savings and investments are routed between providers (people or…

Q: Which of the following is a Short Term Source of Finance? a. Bank Credit b. Equity Shares c.…

A: There are two types of sources of finance one is long term and another is short term source of…

Q: 2. This type of investment is considered a debt instrument. A Stocks ® Bonds © Mutual funds O…

A: There are two type capitals equity and debt

Q: A bank's net interest margin represents the proportion of its investments that are financed with…

A: The difference between interest paid and interest received, adjusted for the entire amount of…

Q: ere are two concepts in respect of working capital Select one: a. None of the options b. Cost of…

A: Working capital represents the variance between all the current assets and current liabilities of a…

Q: Which of the following statements is/are correct? i. The sale of stocks is also referred to as…

A: There are two types of financing available to a company equity financing and debt financing.

Q: Money Market instruments are: A. Common stock B. Preferred stock C. Loan stock D. Debt obligation

A: Dear student, as per Bartleby answering guideline, we can answer only one question, if student post…

Q: Which of the following is not one of the 5 C's of Credit? Question 12 options: Collateral…

A: Option D. Corporate Analysis

Q: What is the blend of long-term ncial sources used to finance the n which may include debt, equity…

A: Explanation: The above options can be explained as follows: a) Working capital : Working capital is…

Q: Debt in the capital structure could be treated as if it were common stock in the weighted average…

A: Debt in the capital structure could be treated as if it were common stock in the weighted average…

Q: Which of the following is not a financing activity: O Issuance of bonds payable O Sale of investment…

A: Introduction: Statement of cash flows: All cash in and out flows are recorded in statement of cash…

Q: Which of the following is not a money market instrument? a. Equity Shares b. Treasury Bills c.…

A: Money market instrument means those instrument which are issued in money market and generally for…

Q: Explain each of the investment instruments stated below that offered by financial institutions.…

A: A financial instrument can also be considered a tradable asset or a block of tradable capital. Most…

Q: On a balance sheet, what valuation must be reported for short-term debt investments in trading…

A: Short term debt investments are those debt funds or mutual funds that are obtained for a short…

Q: Which of the following would be classified as a financing activity on a statement of cash flows?…

A: Solution: Financing activity section of statement of cash flows reflects the net cash flows used to…

Q: Why do stock companies prefer equity financing in raising money for their operations than debt…

A: Equity financing refers to the process whereby a company raises the funds by issuing equity. The…

Q: Both stock and bond returns are based on the cash flows generated by the issuing firm. How do…

A: Shareholders : In simple words, the shareholders of the company refers to the equity stakeholders of…

Q: long-term debt, preferred stock, and commercial paper

A: Debt that matures in more than one year is called long-term debt. Long-term debt is a liability for…

Q: 1. Which of the following is a function of every financial market? A) It determines the level of…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Choose the correct statement about different types of financial markets: a. Capital market is the…

A: From the following statement, we have to find out the correct statement about the financial market.…

Q: . Given the choices from time deposits, corporate bonds and stock, where will you invest your…

A: Before doing investment in a project, investment class is analyzed for profitability and degree of…

Q: Identify the following as either an advantage (A) or a disadvantage (D) of bond financing for a…

Q: All business decisions involve aspects of risk and return. Rank order the following investment…

A: Risk and return are the two most important factors in considering any business decisions as it…

Q: The following ratios gauge a bank’s leverage EXCEPT* Bills Payable to Capital Accounts Capital…

A: Leverage ratio assess the ability of the company (here Bank) to meet its financial obligation. The…

Q: Eaton Electronic Company's treasurer uses both the capital asset of common equity (also referred to…

A: Answer: Ki = 0.118 or 11.8%

Q: When a company borrows funds from creditors, it is considered a form of: Select one: A. equity…

A: Equity financing is done by the owners of the company and they have rights in the management in the…

Q: Common stocks typically have which of the following that bonds do NOT have? 1. I. Voting rights 2.…

A: The question is related to Common Stock and bonds.

Q: Which one of the following is referred as Equity finance? O a. Sale of money market instruments O b.…

A: Equity refers to the amount which is being invested or owned by shareholders means the owner of the…

Q: 1. When the effective cost of debt is greater its the nominal cost, a. the initial net measurement…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Outline and discuss the fundamental technique of valuation for both stocks and bonds. What role does…

A: Stock valuation means calculating the value of stock. It is very important because it helps in…

Q: Which one of the following is NOT a 'Money Market Instrument? Select one: O a. Treasury Bills O b.…

A: Money market instrument refers to the short-term maturity financial instruments which are having a…

Q: Which of the following can be categorized as Short term sources of finance? i Equity Shares ii.…

A: Source of finance can be both short term and long term

Q: REQUIREMENTS: 1. How much is the cost of equity using the capital asset pricing model? 2. How…

A: Cost of Equity represents the expected return by the shareholders of the company.It can be…

Q: Which one of the following is not a money market instrument? a. Equity Shares b. Bankers'…

A: money market instruments are short term liquid instruments which are highly liquid.

Q: Which of the following can be categorized as Long term sources of finance ? i Equity Shares ii Trade…

A: Equity shares: Equity shares are a Long-term financing source of a company. Equity shares represent…

Q: How does preferred stock compare to long-term debt? In what respects is this comparable to equity?

A: The preferred stock and common stock are the financial instruments to raise money from the market.

Q: Which of the following are money market instruments? Check all that apply. Common stocks…

A: Money Market Instruments :- Money market Instruments are those Instruments which can be bought for…

Question

Which of the following can be categorized as Short term sources of finance ?i Equity Sharesii Trade Creditiii Debentureiv Money Market Instruments

a.
Only Equity Shares

b.
Both Equity Shares and Debentures

c.
Only Money Market Instruments

d.
Both Money Market Instruments and Trade Credit

Definition Definition Financial market that deals in securities or assets that are short-term in nature. The money market is responsible for keeping up the liquidity of the businesses and the organizations. These securities are usually held for a period of 12 months or less and are issued by institutions that require cash or funds for their short-term cash flow requirements. The money market is regulated by the federal government.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Stockholders equity consists of which of the following? A. bonds payable B. retained earnings and accounts receivable C. retained earnings and paid-in capital D. discounts and premiums on bond payable
Which of the following can be categorized as Short term sources of finance? i Equity Shares ii. Trade Credit iii Debenture iv Money Market Instruments a. Only Money Market Instruments b. Only Equity Shares c. Both Equity Shares and Debentures d. Both Money Market Instruments and Trade Credit
Which of the following can be categorized as Long term sources of finance ? i Equity Shares ii Trade Credit iii Debenture iv Money Market Instruments a. Both Money Market Instruments and Trade Credit b. Both Equity Shares and Debentures c. Only Equity Shares d. Only Money Market Instruments
Indicate whether the following instruments are examples of money market or capital marketsecurities.a. U.S. Treasury billsb. Long-term corporate bondsc. Common stocksd. Preferred stockse. Dealer commercial paper
Which one of the following is not a money market instrument? a.Equity Shares b.Bankers' acceptances c.Eurodollar CD d.Repurchase agreement
which of the following source of finance is the middle layer between equity and debt?term loan / preference shares / mezzanine debt / debenture
which of the following instrument are traded in capital market. check all that apply A. commercial paper b. treasury bills c. cooperate bonds d. bankers appectances e. common stock
With a support of relevant calculations differentiate the followings terms as used in corporate finance, (i) Simple Interest and Compound Interest (ii) Compounding and Discounting (iii)Ordinary Annuity and Annuity Due
Which of the following would be an entry in the statement of changes in equity? Select one: a. Revaluation reserve b. Revaluation gain c. Taxation d. Long term loans
Which of the following is an example of a capital market instrument? Money market mutual funds. U.S. Treasury bills. Commercial paper. Banker’s acceptances. Preferred stock.
Which of the following statements is/are correct? i. The sale of stocks is also referred to as equity finance ii. The sale of bonds is also referred to as debt finance a.Only i b.Only ii c.Both i and ii are incorrect d.Both i and ii are correct
What is the difference between total assets and total liabilities?a) Dividendb) Bond sinking fundc) Shareholder equityd) Cash Balance