Problem 1. Why would an inventory turnover ratio be more important for a retailer than a consulting firm?
Problem 2. Describe the various flotation costs from issuing stock. How do those flotation costs compare to those from issuing bonds?
Problem 3. What signals are provided to investors when a company obtains equity financing? What signals are provided to investors when a company obtains debt financing?
Problem 4. Is it possible for a firm to have negative working capital? Please explain and provide an example.