Assume the current ratio is positive

Assignment Help Financial Management

Reference no: EM131931247

1. Which one of the following will increase net working capital? assume the current ratio is positive.

a. using cash to pay an accounts payable.

b. using cash to pay a long-term debt.

c. selling inventory cost

d. collecting an accounts receivable.

e. using a long-term loan to buy inventory

2. Five years ago Constellation, Inc., sold an issue of 20-year $1000 par bonds to finance a new distribution terminal. The bonds pay 7.0% interest, semi-annually. Today’s required rate of return for similarly rated bonds is 6.7%. How much should these bonds sell for today? (Round off to the nearest $1.)

a) $650

b) $862

c) $1,028

d) $1,208

e) $1,375

Reference no: EM131931247

Questions Cloud

Individuals who in various aspects : This paper gives a brief overview of our prison design when people are sent to correctional facilities which include individuals who in various aspects

What is the company target debt-equity ratio : If the company issued new securities in the same proportion as its target capital structure, what is the company’s target debt-equity ratio?

What costs are incurred when work unionize : Q: With unionization on the downturn, why should an organization in UAE be concerned about labor relations?

What are the control chart upper and lower control limits : Aquality analyst wants to construct a control chart for determining whether four machines, all producing the same product, are under control with regard .

Assume the current ratio is positive : Which one of the following will increase net working capital? assume the current ratio is positive.

Firm balance sheet decreases without change in credit sales : If the accounts receivable balance on a firm's balance sheet decreases without any change in credit sales, the operating cycle will:

Design the required data structures using uml class diagrams : Analyse the given problem, model, and design the required data structures using UML class diagrams. You will be implementing the software solution

Write an analytical summary of the article : Write an analytical summary of the article focusing on the article's main claims. Include the following: Provide a brief summary of the argument presented.

What is price-sales ratio and what are earnings per share : Price-earnings ratio times If the company had sales of $4.44 million, what is the price-sales ratio? What are earnings per share?

User Account

All Pages