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3 years ago

28. Considered alone, which of the following would increasea company’s current ratio?

Business

1 answer:

natka813 [3]3 years ago

7 0

Answer:

d.An increase in accounts receivable.

Explanation:

The current ratio is one of the liquidity ratios. It measures the company's ability to meet its current liabilities. The higher the ratio, the more financially healthy a company is. The calculation of the current ratio is by dividing current assets by current liabilities.

Current assets include inventory, cash and cash equivalents, accounts receivable, and prepaid expenses . Examples of current liabilities include accounts payable, accrued liabilities like dividend, and payroll, Short-term debt, and the current portion of long-term debt.

An increase in current liabilities increases the current ration. The bigger the numerator is over the denominator, the better the current ratio.

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7. Assume that you manage a $10.00 million mutual fund that has a beta of 1.05 and a 9.50% required return. The risk-free rate i

Vadim26 [7]

Answer:

The correct answer is option (A).

Explanation:

According to the scenario, the computation of the given data are as follows:

First, we will calculate the Market risk premium, then

Market risk premium = (Required return - Risk free rate ) ÷ beta

= ( 9.50% - 4.20%) ÷ 1.05 = 5.048%

So, now Required rate of return for new portfolio = Risk free rate + Beta of new portfolio × Market premium risk

Where, Beta of new portfolio = (10 ÷ 18.5) × 1.05 + (8.5 ÷ 18.5) × 0.65

= 0.5676 + 0.2986

= 0.8662

By putting the value, we get

Required rate of return = 4.20% + 0.8662 × 5.048%

= 8.57%

4 0

3 years ago

What is a target market?

Nonamiya [84]

The sales goals. That's it

5 0

4 years ago

Read 2 more answers

A company's income statement showed the following: net income, $136,000 and depreciation expense, $33,600. An examination of the

elixir [45]

Eeeeeeeeew
Hope this helps pass

6 0

3 years ago

If managers are making decisions to maximize shareholder wealth, then they are primarily concerned with making decisions that sh

bogdanovich [222]

Answer:

It is to increase the market value of the firm's common stock (B)

Explanation:

Profits : it is subjective in nature and can be manipulated. Hence, it is not good measure of shareholders wealth maximization.

Increase the market value of the firm's common stock : This is difficult to manipulate because it results from long-term view of business performance through investment in a viable projects . When the company produces good result that give investors good return for their capital, this will have a positive market impact on the share price of the company.

5 0

4 years ago

Which of the following is a characteristic of a monopoly market?

EleoNora [17]

Answer:

single seller competition in the short run

Explanation:

because Monopoly is considered a product maximizer so it can't be minimal and it most definitely is not close substitute for their products and services

5 0

3 years ago