Company A is a large public company with annual revenue of $1.2 billion and high fixed
costs. Its stock is listed on the New York Stock Exchange. Company B is a mid-sized
company with annual revenue of $100 million and low fixed costs. Its stock is listed on the
NASDAQ. Which of the following statements is MOST LIKELY to be true when comparing
Company A and Company B?
XYZ Company has a well established commercial paper (CP) program that they use to
fund operations. The company is expanding by purchasing a new factory. The CFO is
worried about the time and expense needed to issue long-term debt and decides to use the
funds they raise in the CP market to pay for the purchase of the factory. This strategy will
be successful if:
ABC Company, a leading provider of office supplies, has successfully implemented EDI
based on a request from one of its customers. ABC will not only benefit from the strategic
alliance that will result, but as more of ABC’s customers adopt the program, ABC will also
experience a positive impact on its: