The correct answer is choice D-
It not true that a <span>recession is usually no longer than six months. A recession van be longer than 6 months (it takes a 6 months fall in real GDP for a recession to occur), but </span>a recession generally<span> does </span>not<span> last </span>longer than<span> a year. Beyond a year, the situation is much severe, and is called an economic depression.</span>
Answer:
b. Debt ratio
Explanation:
The liquidity ratio includes the current ratio, quick ratio, etc
where,
Current ratio = Total Current assets ÷ total current liabilities
And, Quick ratio = Quick assets ÷ total current liabilities
where,
Quick assets = Cash and cash equivalents + short-term investments + Accounts receivable (net)
These two ratios check the liquidity of the business organization whereas debt ratio shows a relationship between the total liabilities and the total assets. It checks the leverage of the firm whether it is capable to repay the borrowed amount or not
Hence, option b is correct
I think this is a trick question. Say, there are 2 pounds of cocoa / 1 gallon of chocolate ice cream. But then the problem only mentions the production of eight gallons of <em>strawberry</em> ice cream, not chocolate ice cream.
However, if they're somehow related (like they are made from the same machine), then you need 16 pounds of cocoa to produce 8 gallons of chocolate ice cream.
Answer:
Po = <u>D1</u> + <u>D2</u> + <u> D3</u>
(1 + Ke) (1 + Ke)2 (1 + Ke)3
Po = <u>$12</u> + <u>$12.50</u> + <u>$28
</u>
(1 + 0.1) (1 + 0.1)2 (1 + 0.1)3
Po = <u>$12</u> + <u>$12.50</u> + <u>$28</u>
1.1 (1.1)2 (1.1)3
Po = $10.91 + $10.33 + $21.04
Po = $42.28
Explanation:
The current stock price is a function of future dividends capitalised at the cost of capital of the company of 10% for a period of 3 years.
Answer:
c. 42.6%
Explanation:
Average total assets = $410,000+$257,000/2
Average total assets = $667,000
Average total assets = $333,500
Net income = $112,000
Interest expenses = $30,000
Return on total assets = Net income + Interest expenses / Average total assets
Return on total assets = $112,000 + $30,000 / $333,500
Return on total assets = 0.42388060
Return on total assets = 42.39%
