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nalin [4]
1 year ago
9

You are analyzing the following four companies based on their debt to equity ratio. which company has the highest risk of insolv

ency? company a 2.5 company b 1.0 company c 0.9 company d 3.0
Business
1 answer:
lys-0071 [83]1 year ago
6 0

Company D company has the highest risk of insolvency.

Bankruptcy risk, or insolvency hazard, is the chance that an agency will be unable to satisfy its debt obligations. it is the opportunity for a company turning into insolvent because of its incapacity to service its debt.

There are loads of intricacies when navigating the concern listing of creditors during a liquidation system. In general, secured creditors have the very best priority observed by using precedence over unsecured lenders. The final lenders are frequently paid previous to fair shareholders.

Bad financial control and having a consistent loss of cash may be one in the biggest causes of insolvency. No longer having sufficient cash in the bank to cover monthly expenses such as payroll and hire as well as any surprising prices, can eventually land a business in hot water.

Learn more about businesses here: brainly.com/question/24448358

#SPJ4

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The president of a growing engineering firm wishes to give each of 20 employees a holiday bonus. how much needs to be deposited
Ludmilka [50]

Given that: F (Future worth) = $2,500, i (nominal interest rate) = 0.12, compounded monthly = 12 months, years of investment = 1 year, and no. of employees = 20. Compute using the annuity formula: A=Fi/(((1+i)^n)-1). Calculating i = 0.12/12 = 0.01, since it is compounded monthly. Calculating n (total number of compounding) = 1 x 12 = 12, since year of investment is equal to 1. Substituting F=2500, i=0.01 and n=12 to the annuity formula, you will get A=$197.12. Multiply by 20, you will get $3,942.44.

4 0
3 years ago
one of the major criticisms of the G-20 is that they are completely ineffective in setting policies? true or false
tia_tia [17]
False, The whole point of G-20 is to set policies that are effective
6 0
3 years ago
You plan on purchasing the stock of Red Cigars Inc. and you expect it to pay a dividend of​ $3.15 in 1​ year, $3.55 in 2​ years,
Musya8 [376]

Answer:

Price of stock = $78.143

Explanation:

According to the dividend valuation model , the current price of a stock is the present value of the expected future dividends discounted at the required rate of return.  

So we will discount the steams of dividend using the required rate of 11.0% as follows

Price of stock =3.15 × 1.11^(-1)  +3.55× 1.11^(-2) +4.05 1.11^(3)  +95× 1.11^(-3)

=78.143

Price of stock = $78.143

3 0
3 years ago
Jaronda founded Diamond Communications Inc. in 1993. Ten years later, the company went public. Despite Jaronda's death in 2005,
Solnce55 [7]

Answer: C. separation of legal ownership and management control

Explanation: Public traded company can go on with their operation undisturbed when the founder dies, because there is separation of ownership from management of the company.

Public traded companies usually have a board which management report to, the board is the highest decision making body in the company.

7 0
3 years ago
Would it be more profitable to own 200 shares of Penny's pickles or 1 share of Exxon ?
ZanzabumX [31]

1 share of exxon, pennys pickles isnt exactly the most booming market right now

7 0
3 years ago
Read 2 more answers
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