Podcast
Questions and Answers
Which type of industry tends to have a short cash conversion cycle?
Which type of industry tends to have a short cash conversion cycle?
- Retailers (correct)
- Tech companies
- Financial institutions
- Heavy industries
What is the impact of the cash conversion cycle on structural working capital needs?
What is the impact of the cash conversion cycle on structural working capital needs?
- It stabilizes the working capital needs
- It increases the working capital needs (correct)
- It decreases the working capital needs
- It has no impact
What is the typical cash conversion cycle for heavy industries?
What is the typical cash conversion cycle for heavy industries?
- Short
- Variable
- Medium
- Long (correct)
Why do retailers tend to have a short cash conversion cycle?
Why do retailers tend to have a short cash conversion cycle?
What step in the process triggers the need for external financing according to the text?
What step in the process triggers the need for external financing according to the text?
What does looking at the global VIXX index help determine?
What does looking at the global VIXX index help determine?
What was the purpose of establishing the Financial Stability Board (FSB) in April 2009?
What was the purpose of establishing the Financial Stability Board (FSB) in April 2009?
What is one of the key mandates of the Financial Stability Board (FSB)?
What is one of the key mandates of the Financial Stability Board (FSB)?
Why were global systemic banks instructed by the FSB to create an additional absorbency blanket?
Why were global systemic banks instructed by the FSB to create an additional absorbency blanket?
How did the COVID-19 pandemic impact the economy initially?
How did the COVID-19 pandemic impact the economy initially?
Why did only certain companies like Amazon and Facebook benefit during the pandemic according to the text?
Why did only certain companies like Amazon and Facebook benefit during the pandemic according to the text?
What does TERP stand for in the context of rights issue?
What does TERP stand for in the context of rights issue?
In a 1 for 2 rights issue at €5 for a company with 1000 shares originally priced at €10, what will be the value of the rights issued to shareholders?
In a 1 for 2 rights issue at €5 for a company with 1000 shares originally priced at €10, what will be the value of the rights issued to shareholders?
How is the adjustment factor calculated in a rights issue scenario?
How is the adjustment factor calculated in a rights issue scenario?
What is the purpose of offering existing shareholders pre-emptive rights in a capital increase?
What is the purpose of offering existing shareholders pre-emptive rights in a capital increase?
In the context of a rights issue, what might entice an existing shareholder to sell their rights to other interested parties?
In the context of a rights issue, what might entice an existing shareholder to sell their rights to other interested parties?
If a company offers new shares resulting from a rights issue at a price lower than €8.33 due to economic problems, how much discount would this represent if the shares are offered at 5% less?
If a company offers new shares resulting from a rights issue at a price lower than €8.33 due to economic problems, how much discount would this represent if the shares are offered at 5% less?
What is the purpose of a forward exchange in the context of currency hedging?
What is the purpose of a forward exchange in the context of currency hedging?
In the given scenario, what is the currency denomination used by the European importer to budget for raw material purchase?
In the given scenario, what is the currency denomination used by the European importer to budget for raw material purchase?
What is the total amount of goods purchased by the European importer in the USA?
What is the total amount of goods purchased by the European importer in the USA?
How does a forward exchange rate differ from a spot exchange rate?
How does a forward exchange rate differ from a spot exchange rate?
What amount will the company pay to the bank according to the text?
What amount will the company pay to the bank according to the text?
The underlying asset in a forward exchange transaction is usually:
The underlying asset in a forward exchange transaction is usually:
What is the function of the Remitting Bank in a documentary credit transaction?
What is the function of the Remitting Bank in a documentary credit transaction?
In a documentary credit transaction, what does the Importer need to do to receive the documents?
In a documentary credit transaction, what does the Importer need to do to receive the documents?
What is the main function of a Confirming Bank in a Letter of Credit?
What is the main function of a Confirming Bank in a Letter of Credit?
What is the difference between a revocable and an irrevocable documentary credit?
What is the difference between a revocable and an irrevocable documentary credit?
What is the role of an Advising Bank in a documentary credit transaction?
What is the role of an Advising Bank in a documentary credit transaction?
What is the purpose of the Letter of Credit in international trade transactions?
What is the purpose of the Letter of Credit in international trade transactions?
