Explain what it means for a firm to have a current ratio

Assignment Help Finance Basics
Reference no: EM13566628

Explain what it means for a firm to have a current ratio equal to 0.50. Would the firm be better off if the current ratio were 1.50? What if it were 15.0? Explain your answers.

Reference no: EM13566628

Questions Cloud

Community challenges a nonprofit organization for : community challenges a nonprofit organization for physically and mentally challenged people manufactures a variety of
Explain the difference between marginal and average tax : explain the difference between marginal and average tax rates and identify which of these rates is used in capital
Explain why the required rate of return on a firms assets : explain why the required rate of return on a firms assets must be equal to the weighted average cost of capital
At the beginning of 2012 annie inc has a deferred tax asset : at the beginning of 2012 annie inc. has a deferred tax asset of 7500 and deferred tax liability of 10500. in 2012
Explain what it means for a firm to have a current ratio : explain what it means for a firm to have a current ratio equal to 0.50. would the firm be better off if the current
How are project classifications used in the capital : how are project classifications used in the capital budgeting
Holding all other things constant does a decrease in the : holding all other things constant does a decrease in the marginal tax rate for a firm provide incentive for the firm to
The firm paid out 220000 in cash dividends and it has : storico cleaning inc. had additions to retained earnings for the year just ended of 380000. the firm paid out 220000
Reagen wholesale corp uses the lifo cost flow method in the : reagen wholesale corp. uses the lifo cost flow method. in the current year profit at reagen is running unusually high.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  What is the present value of this business opportunity

If $9,000 is invested in a certain business at the start of the year, the investor will receive $2,700 at the end of each of the next four years. What is the present value of this business opportunity if the interest rate is 7% per year?

  Find out the standard deviation of returns over this iod

Find out the variance of returns over this each iod. Find out the standard deviation of returns over this each iod.

  Direct and indirect costs of bankruptcy

Illustrate out the direct and indirect costs of bankruptcy. In brief explain each.

  Why do we use forecasted incremental after-tax free cash

why do we use forecasted incremental after-tax free cash flows instead of forecasted accounting earnings in estimating

  Would you expect the distribution between dividend yield

Would you expect the distribution between dividend yield and capital gains to be influenced by the firm's decision to pay more dividends rather than to retain and reinvest more of its earnings?

  Calculate the npv and irr of the project

A corporation' initial investment is $220 million, obtainable at the end of the plant's useful life in ten years. Your corporation uses straight line depreciation.

  How much money will you invest in stock x and stock y?

You have $12,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14 percent and Stock Y with an expected return of 10 percent. Assume your goal is to create a portfolio with an expected return of 12.30 percent.

  Computation of coefficient of variation

Computation of Coefficient of Variation and The data gathered relative to each of these alternatives are summarized

  What is the present value of her winnings

Carol Jenkins, a lottery winner, will receive the following payments over the next seven years. If she can invest her cash flows in a fund that will earn 10.3 percent annually, what is the present value of her winnings? (Round answer to 2 decimal ..

  What is the value of the forward contract

A 2-year long forward contract on a non-dividend-paying stock is entered into when the stock price is $138 and the risk-free interest rate is 9.3% per annum with continuous compounding. 1 year later, the price of the stock is $146 and the risk-fre..

  Do you agree with the bonneau decision to sell

1. Do you agree with the Bonneau's decision to sell? Why or why not? 2. Why did the buyer's retain Ed as a consultant? 3. Do you see any problem with having the Bonneau's son-in-law become the new chief operating officer?

  Iventory of 190000 accounts receivable of 250000 notes

elle mae industries has a cash balance of 50000 accounts payable of 150000 inventory of 190000 accounts receivable of

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd