Answer:
Working capital is essential to a company's fundamental health and operational success. It helps in maintaining a solid balance between growth, profitability and liquidity.
Net working capital is the difference between a business/ company's current assets and current liabilities or debts.
Current assets are cash, accounts receivable and inventories of raw materials and finished goods
Current liabilities are accounts payable.
Explanation:
Working capital helps to maintain smooth operations and help improve a company's earnings and profitability and it includes:
1. Inventory management
2. Management of accounts receivable and account payable.
Answer: They are studying Macroeconomics.
Explanation: Macroeconomics is a branch of economy that deals with the study of demand and supply and overall economic activities happening around as a whole instead in parts. Thus, when economists are studying aggregate demand and supply, they are studying macroeconomics and not microeconomics.
Answer:
It's A) High school athletes stop shopping there and B) The inventory of sports socks goes unsold
Answer: 9.07%
Explanation:
The Weighted Average Cost of Capital is essentially how much it costs a company to raise all the capital it has including long term debt and equity.
It is calculated by weighing each category of capital with their cost to find the Weighted Average.
In this scenario therefore it will be calculated by,
= 0.37 ( 0.061) + 0.63 ( 0.143)
= 0.02257 + 0.09009
= 0.11266
= 11.27%
It is said that Division A's projects are assigned a discount rate that is 2.2 percent less than the firm's weighted average cost of capital. That would be,
= 11.27 - 2.2
= 9.07%
The discount rate applicable to Division A is 9.07%
The additional amount that could be loaned out because of deposit of Linda is $4000.
Answer: Option B.
<u>Explanation:</u>
Bank can not loan out the entire amount it has with it. Certain amount is to be kept reserved with it for all times. This is known as required reserve ratio which is a particular ratio of the total deposits.
At the time of being totally loaned out, with twenty percent as the required reserve ratio, the bank can loan out extra amount when Linda deposits money. Since Linda Deposits $5000, twenty percent of this keeping as required reserve ratio, it can loan out $4000 more.