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Anika [276]
3 years ago
9

Consider the relative liquidity of the following assets:

Business
1 answer:
motikmotik3 years ago
7 0

Answer:

Liquidity of an asset refers to how easily convertible the asset is to cash or so called liquid money.

Most Liquid - A $5 bill

This is already cash so it is the most liquid there is.

Second-Most Liquid  - The funds in a money market account

Funds in a money market account are the second most liquid because most often they can simply be withdrawn from the fund. There might be limits on the number of withdrawals allowed though within a period.

Third-Most Liquid  -  A share in a publicly traded company

A share in a publicly trade company ranks here because to realize the cash, one would need to sell the share first.

Least Liquid - Your house

Your house will be the most difficult of these to liquidate as it will involve a much longer process to eventually get it sold and realize cash. The process will include but will not be limited to, advertising, hiring realtors, inspection etc.

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Firm L has debt with a market value of $200,000 and a yield of 9%. The firm's equity has a market value of $300,000, its earning
Norma-Jean [14]

Answer:

Firm L's cost of equity is 13.2%

Explanation:

In order to calculate Firm L's cost of equity we would have to calculate the following formula:

Firm L's cost of equity=Unlevered cost of equity+D/E*( Unlevered cost of equity-cost of debt)*(1-tax rate)

D/E = debt/equity

D/E = $200,000/$300,000

D/E=0.6666

Therefore, Firm L's cost of equity= 12%+0.6666*(12%-9%)*(1-0.4)

Firm L's cost of equity=13.2%

Firm L's cost of equity is 13.2%

5 0
3 years ago
The rapid economic growth of the 1980s and the cultural emphasis on accumulating wealth was partly caused by:________
kozerog [31]

The rapid economic growth and emphasis on accumulating wealth in the 1980s was partly caused by the baby boom.

<h3>What baby boomers mean?</h3>

Person born during a period of time in which there is a marked rise in a population's birth rate i.e., a person born during a baby boom

Following the end of World War II, the number of babies born 9 months later increased. At the end of 1964, there were approximately 76 million babies born, accounting for roughly half of the population.

Especially,  a person born in the U.S. following the end of World War II (usually considered to be in the years from 1946 to 1964).

The viewer is older, an aging baby boomer whose '60s activism has been lost among the years. Baby boomers were born between 1946 and 1964. They're currently between 57-75 years old.

To learn more about baby boomers, refer to:

brainly.com/question/904290

#SPJ4

4 0
1 year ago
Oxygen Optimization is considering the caffeine project, which would involve selling caffeinated oxygen for 1 year. The firm exp
Korolek [52]

Answer:

Operating cash flow is 20498.1979 dollars

Please take a look to the excel document attached

Explanation:

EBIT=Total sales-Operating cost=43268.8019-17842.8049=25425.997.

EBIT-Deprciation=25425.997-9000=16425.997

EBT-tax=16425.997-(4927.7991)=11498.1979.

Operating cash flow=EAT+Depreciation(NON CASH EXPENSES)

=11498.1979+9000=20498.1979 dollars

Download xlsx
3 0
3 years ago
__________ refers to the location of the sport product, the point of origin for distributing the product, the geographic locatio
barxatty [35]

Answer:

Place refers to the location of the sport product, the point of origin for distributing the product, the geographic location of the target markets, and other channels that are important to consider regarding how target audiences may access the product.

Explanation:

Place is simply a portion of space designated or available for or being used by someone.

6 0
2 years ago
Compare the demand for sugar with demand for food. the demand for sugar is likely
Digiron [165]
The answer is D.More elastic because sugar tends to represent a larger fraction of a consumer's budget
4 0
2 years ago
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