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Forward vs future contract

1) The principal differences between a forward contract and a future contract include all of the following EXCEPT:
-A future contract is standardized as to size and terms
-A future contract is only good on agricultural commodities
-There is an active secondary market in future contracts
-Forward contracts can be specifically designed to fit the exact needs of two counterparties, while a futures contract cannot

2) Other things held constant, which of the following actions would increase the amount of cash on a company's balance sheet?
-Buying a fixed asset
-Selling shares of stock from treasury stock
-Declaring a cash dividend
-Calling in a callable bond issue

3) If a typical U.S. company uses the same cost of capital to evaluate all projects, the firm will most likely become:
-riskier over time, but its intrinsic value will be maximized.
-riskier over time, and its intrinsic value will not be maximized.
-less risky over time, and its intrinsic value will not be maximized.
-less risky over time, and its intrinsic value will be maximized.
-There is no reason to expect its risk position or value to change over time as a result of its use of a single cost of capital.

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Which of the following actions would increase the amount of cash on a company's balance sheet?

1) The principal differences between a forward contract and a future contract include all of the ...

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