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juin [17]
3 years ago
9

A current ratio of 6.0 is usually an indication that the firm:

Business
1 answer:
LUCKY_DIMON [66]3 years ago
3 0
The answer is it has<span> not made the most productive use of its assets.
The current asset ratio is calculated by dividing your current assets with your current liabilites. If your current assets is 6 times much larger than your current liability, we can draw a conclusion that the company keep its asset on the back without making an effort to overturn it.</span>
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target debt-equity ratio of .40. Its cost of equity is 11.8 percent and its cost of debt is 6.5 percent. If the tax rate is 21 p
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9.90%

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Debt-equity=debt/equity=0.40( debt=0.40 while equity is  1 since 0.40/1=0.40)

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weight of equity=1/(0.40+1)=71.43%

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