Difference between current liability and long-term liability

Assignment Help Financial Management
Reference no: EM131185246

What is the difference between a current liability and a long-term liability?

How are liabilities taken into account when analyzing an organization's current financial position?

Is it better to have more money in liabilities or equity?

Reference no: EM131185246

Questions Cloud

Duration is weighted-average payment time for a bond : Duration is a weighted-average payment time for a bond.  The Macaulay duration considers the timing of a bond's cash flows. The Macaulay duration uses the YTM of a bond to discount the cash flows.
When thinking about the new divisions cost of capital : During the last few years, Harry Davis Industries has been too constrained by the high cost of capital to make many capital investments. Recently, though, capital costs have been declining, and the company has decided to look seriously at a major exp..
Cash flow to stoclkholders and cash flow to creditors : Volbeat Corp. shows the following information on its 2015 income statement: sales = $275,000; costs = $188,000; other expenses = $7,900; depreciation expense = $15,200; interest expense = $13,600; taxes = $17,605; dividends = $10,500. In addition, yo..
Price does dividend-discount model predict colgate stock : Colgate-Palmolive company has just paid an annual dividend of $0.97. Analysts are predicting a 10.6% per year growth rate in earnings over the next five years. after that, colagtes earnings are expected to grow at the current industry average of 5.3%..
Difference between current liability and long-term liability : What is the difference between a current liability and a long-term liability? How are liabilities taken into account when analyzing an organization's current financial position? Is it better to have more money in liabilities or equity?
Present value with different discount rates : Present Value with Different Discount Rates Compute the present value of $1,000 paid in three years using the following discount rates: 6 percent in the first year, 7 percent in the second year, and 8 percent in the third year.
Find the present value of an annuity : Find the Present Value of an annuity thay pays $1000 per year for 12 years at 10%? How would your answer change if the payments are made at the beginning of the year? What is the PV of a perpetuity of $100 per year if the appropriate discount rate is..
Calculate the gross profit margin-operating profit margin : Profitability Ratios Maggie’s Skunk Removal Corp.’s 2015 income statement listed net sales of $12.5 million, gross profit of $6.9 million, EBIT of $5.6 million, net income avail- able to common stockholders of $3.2 million, and common stock dividends..
What is per-share value of van-buren to harrison corporation : Harrison corporation is intersted in acquiring Van Buren Corporation. Assume that the risk-free rate of interest is 5%, and the market risk premium is 6%. What is the per-share value of Van-Buren to Harrison Corporation?

Reviews

Write a Review

Financial Management Questions & Answers

  What was your dollar return and percent return

A corporate bond that you own at the beginning of the year is worth $945. During the year, it pays $59 in interest payments and ends the year valued at $935. What was your dollar return and percent return?

  What is the companys average accounts receivable

Medwig Corporation has a DSO of 42 days. The company averages $4,500 in credit sales each day. What is the company's average accounts receivable? Round your answer to the nearest dollar.

  Higher standard deviation than stock

Please shortly explain how they arrived at the answers below? Stock A has a beta of 1.5, and stock B has a beta of 1.0. Determine whether each of the statements below is true or false. Stock A must have a higher standard deviation than Stock B. Stock..

  Increase in sales without raising funds externally

Carter Corporation's sales are expected to increase from $X in 2012 to $10 million in 2013. Its assets totaled $5 million at the end of 2012. Carter is at full capacity, so its assets must grow in proportion to projected sales. what was the firm's sa..

  What will be its price one year hence

An 8.6%, ten-year bond yields 6.6%. If the yield remains unchanged, what will be its price one year hence? Assume annual coupon payments.

  Option to expand production increase the npv of the project

Hit or Miss Sports is introducing a new product this year. If its see-at-night soccer balls are a hit, the firm expects to be able to sell 68,000 units a year at a price of $50 each. If the new product is a bust, only 48,000 units can be sold at a pr..

  What is insolvency risk

What is insolvency risk? How can liquidity risk and credit risk cause insolvency? What actions can a financial institution take to best protect itself against insolvency?

  Prepare separate direct materials budgets for each product

Berry company manafactures two products, (1) Regular (2) Deluxe. It takes 3 pound of direct materials to produce the regular product and 5 pounds of direct materials to produce the deluxe product. Prepare separate direct materials budgets for each pr..

  Find the market value of the bonds using semiannual analysis

Cox Media Corporation pays a coupon rate of 8 percent on debentures that are due in 20 years. The current yield to maturity on bonds of similar risk is 6 percent. The bonds are currently callable at $1,150. Find the market value of the bonds using se..

  Calculate best-case and worst-case NPV figures

We are evaluating a project that costs $1,100,000, has a ten-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 42,000 units per year. Calculate the best-case an..

  Using penetrating pricing strategy

Few years back, HP launched four new computer models aimed at the Chinese and Indian consumer markets to create loyal customers as these markets emerged. Using penetrating pricing strategy, HP priced the new computers under $400, significantly less t..

  Preferred stock valuation

Several years ago, Rolen Riders issued preferred stock with a stated annual dividend of 9% of its $100 par value. Preferred stock of this type currently yields 10%. Assume dividends are paid annually. What is the value of Rolen's preferred stock?

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