Answer the following questions
1) What are the factors for determining the size of investment in accounts receivable? Which of these factors is under the control of the manager?
2) If the firm experienced no bad debt losses over the past year, would this indicate proper credit management? Yes or no?
3) What are the limitations of breakeven analysis?
4) What are the additional factors encountered in international, as compared to domestic, financial management?
5) How do purchasing power parity, interest rate parity, and the Fisher Effect explain the relationships between the current spot rate, the future spot rate, and the forward rate?
6) What risks are associated with direct foreign investment? How are these risks different from domestic investment problems? If so, why?