Firms reliance upon short-term debt or current liabilites

Assignment Help Financial Management

Reference no: EM131087795

In general the greater a firms reliance upon short-term debt or current liabilites

A-The lower will be its liquidity

B-There will be no effect on liquidity

C-The greater will be it s liquidity

D-Liquidity will remain constant

Reference no: EM131087795

Questions Cloud

What is the MACRS-GDS property class : A high-precision programmable router for shaping furniture components is purchased by Henredon for $180,000. It is expected to last 12 years. Calculate the depreciation deduction and book value for each year using MACRS-GDS allowances. What is the MA..

What is the value of the depreciation tax shield : Leisure Vacations is considering a project which will require the purchase of $1.4 million in new 5-Year MACRS equipment The MACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respec..

Use of current liabilities to finance assets : Which of the following is a disadvantage of the use of current liabilities to finance assets?

Outstanding accounts receivable : On March 31, a company had outstanding accounts receivable of $52,000. Sales are roughly 40% credit and 60% cash, with the credit sales collected half in the month after the sale and the remainder two months after the sale. what is the balance in acc..

Firms reliance upon short-term debt or current liabilites : In general the greater a firms reliance upon short-term debt or current liabilites

What will be dollar cost of hedging with options : When a forward market already existed, why was it necessary to establish currency futures and currency options contracts? Are you facing foreign currency exposure due to the appreciation or depreciation of dollar? What will be the dollar cost of hedg..

What amount of cash will be received during december : The sales for October, November and December are $10,000, $12,000 and $18,000, respectively. For any particular month of sales, the following percentages are received over time in cash: 20% in cash from that same month of sales; 50% in cash from the ..

What is the after-tax cost of capital to cooper for bonds : A Corporation is contemplating a new investment to be financed with debt. The firm could sell new $1,000 par value bonds at a net price of $950. The coupon interest rate is 13%, and the bonds would mature in 15 years. If the company is in a 34% tax b..

Determine the degree of operating leverage of production : The poseidon swim company produces swim trunks. The average sellling price for one of their swim trunks is $84.14. The variable cost per unit is $19.65. Poseidon Swim has a average fixed costs per year of 6,357. Determine the degree of operating leve..

User Account

All Pages