Question

In: Finance

When a company is about to launch a new product, it must necessarily add inventory of...

When a company is about to launch a new product, it must necessarily add inventory of the product before the launch in stores. This would _________ free cash flow in the period the inventory was created.

  • A. decrease
  • B. have no effect on
  • C. increase
  • D. first decrease, then increas
  • A “firm commitment” in a public offering of securities would be made by which kind of bank?
  • A. A commercial bank
  • B. An investment bank
  • C. Both a. and b. could make a firm commitment
  • D. Neither a. nor b. could make a firm commitment
  • E. Form 11-K

One financial statement posts results from every other financial statement. Which financial statement is this?

- A. statement of retained earnings

  • B. income statement
  • C. statement of cash flows
  • D. balance sheet

Funds available for investment in Treasury bills are in the capital market.

A. True
B. False

In what Form filed with the SEC would you find a company’s annual, audited financial statements?

  • A. Form 4
  • B. Form 144
  • C. Form 10-K
  • D. Form 8K
  • E. Form 11
    K

Solutions

Expert Solution

A . decrease. Because inventory usually generates cashflow but here it is a new product and is about to launch so for the period of inventory creation cashflow will decrease.

B.An investment bank- investment bank mkes agreement with companies for doing underwriting. Here investment bank are just like agents and by agreement they agrees to sell securities to public. An underwriter usually buys all the securities and offers to public even if it is not bought by investors company gets price of securities from investment banks.

D.Balance sheet is the statement which posts results from every other financial statements. The answer of income statement that is Net Income is connected with balance sheet and cash flow statement. Cash flow statement start with Net Income . The net change in cash on the cash flow statement and cash amount of the previous period's balance sheet in total makes the cash for this period.

B. False. T bills are related to Money market. Treasury bill is a money market instrument. T bills have 1 year or less than 1year maturity. These are issued by government

C.FORM 10k It gives comprehensial summary of a comapny's financial performance. A copy of this should be given if a shareholder asks for it.

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

gladstone is about to launch a new product. depedning on the success of the new product,...
gladstone is about to launch a new product. depedning on the success of the new product, gladstone may have one of four values next year: $155 million, $130 million, $97 million, or $82 million. these outcomes are equally likely and the risk is diversifiable. gladstone will not make any payouts to investors during the year. suppose the risk-free interest rate is 5.2% and assume perfect capital markets. a) the intitial value of gladstones equity withut leverage is $______ million. b)...
The scenic company is about to launch a new product. The test market results indicate that...
The scenic company is about to launch a new product. The test market results indicate that potential customers like the new product. Based on extensive research the following estimates have been developed for the first 3 years. These estimates are for the market as a whole. During year 1 you will be the only firm in the market:                   Year 1                Year 2                Year 3 Price          Volume               Volume               Volume $10            30,000                50,000                80,000 $14            20,000                35,000                50,000 $18            10,000                15,000               ...
Gladstone Corporation is about to launch a new product. Depending on the success of the new​...
Gladstone Corporation is about to launch a new product. Depending on the success of the new​ product, Gladstone may have one of four values next​ year: $ 152 ​million, $ 140 ​million, $ 95 ​million, and $ 84 million. These outcomes are all equally​ likely, and this risk is diversifiable. Suppose the​ risk-free interest rate is 5 % and​ that, in the event of​ default, 27 % of the value of​ Gladstone's assets will be lost to bankruptcy costs.​ (Ignore...
Gladstone Corporation is about to launch a new product. Depending on the success of the new?...
Gladstone Corporation is about to launch a new product. Depending on the success of the new? product, Gladstone may have one of four values next? year: $ 153 ?million, $ 139 ?million, $ 95 ?million, and $ 79 million. These outcomes are all equally? likely, and this risk is diversifiable. Suppose the? risk-free interest rate is 5 % and? that, in the event of? default, 30 % of the value of? Gladstone's assets will be lost to bankruptcy costs.? (Ignore...
Gladstone Corporation is about to launch a new product. Depending on the success of the new​...
Gladstone Corporation is about to launch a new product. Depending on the success of the new​ product, Gladstone may have one of four values next​ year: $ 155 ​million, $ 137 ​million, $ 96 ​million, and $ 83 million. These outcomes are all equally​ likely, and this risk is diversifiable. Suppose the​ risk-free interest rate is 5 % and​ that, in the event of​ default, 23 % of the value of​ Gladstone's assets will be lost to bankruptcy costs.​ (Ignore...
Gladstone Corporation is about to launch a new product. Depending on the success of the new...
Gladstone Corporation is about to launch a new product. Depending on the success of the new product, Gladstone may have one of four values next year: $150 million, $135 million, $90 million, or $80 million. These outcomes are all equally likely, and this risk is diversifiable. Suppose the risk-free interest rate is 5% and that, in the event of default, 25% of the value of Gladstone’s assets will be lost to bankruptcy costs. (Ignore all other market imperfections, such as...
Gladstone Corporation is about to launch a new product. Depending on the success of the new​...
Gladstone Corporation is about to launch a new product. Depending on the success of the new​ product, Gladstone may have one of four values next​ year: $ 153 ​million, $ 131 ​million, $ 96 ​million, and $ 85 million. These outcomes are all equally​ likely, and this risk is diversifiable. Gladstone will not make any payouts to investors during the year. Suppose the​ risk-free interest rate is 4.7 % and assume perfect capital markets. a. What is the initial value...
Gladstone Corporation is about to launch a new product. Depending on the success of the new​...
Gladstone Corporation is about to launch a new product. Depending on the success of the new​ product, Gladstone may have one of four values next​ year: $ 146 million,$ 130 million,$ 91million, and $ 79million. These outcomes are all equally​ likely, and this risk is diversifiable. Suppose the​ risk-free interest rate is 5 % and​ that, in the event of​ default, 24 %of the value of​ Gladstone's assets will be lost to bankruptcy costs.​ (Ignore all other market​ imperfections, such...
Gladstone Corporation is about to launch a new product. Depending on the success of the new​...
Gladstone Corporation is about to launch a new product. Depending on the success of the new​ product, Gladstone may have one of four values next​ year: $146 ​million, $138 ​million, $92 ​million, and $81 million. These outcomes are all equally​ likely, and this risk is diversifiable. Suppose the​ risk-free interest rate is 5% and​ that, in the event of​ default, 28% of the value of​ Gladstone's assets will be lost to bankruptcy costs.​ (Ignore all other market​ imperfections, such as​...
A firm is about to launch a new consumer product that is purchased frequently (e.g., toothpaste)...
A firm is about to launch a new consumer product that is purchased frequently (e.g., toothpaste) and plans a massive advertising campaign. After analyzing focus group outcomes, company estimates that: – 35% of the potential buyers will see the ads. – Of those who see the ads, 40% will try the product. – Of those who try the product after seeing the ads, 45% will become regular users. The firm also estimates that: – Of those potential buyers who do...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT