The term that describes an action that can damage or compromise an asset is “Threat”. The word “Threat” can be explained as the possibility of damage of loss or compromise for an asset. Threat can include theft, accident, degradation, impairment, breakdown or other negative happening for an asset.
Hence “Threat” is the term that describes an action that can damage or compromise an asset.
Answer:
Increase.
Explanation:
Given that,
Total current assets = $510,000
Total current liabilities = $250,000
Current ratio before paying short term note:
= Total current assets ÷ Total current liabilities
= $510,000 ÷ $250,000
= 2.04
On July 1, 2017: Payment of short term note with cash = $60,000
This payment of short term note reduces the total current assets in terms of cash reduction and also reduces the total current liabilities in terms of short term liability.
New total current assets:
= $510,000 - $60,000
= $450,000
New current liability:
= $250,000 - $60,000
= $190,000
Current ratio:
= New Total current assets ÷ New Total current liabilities
= $450,000 ÷ $190,000
= 2.37
Therefore, the current ratio of this firm increases from 2.04 to 2.37.
Parking Tickets
Medical Bills
Bank Overdrafts
Hope This Helps!
:D
Answer:
WACC - new project = 6.408% rounded off to 6.41%
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure can consist of one or more of the following components namely debt, preferred stock and common equity. The WACC is calculated as follows,
WACC = wD * rD * (1 - tax rate) + wP * rP + wE * rE
Where,
- w represents the weight of each component
- r represents the cost of each component
- D, P and E represents debt, preferred stock and common equity
- rD * (1 - tax rate) is the after tax cost of debt
We first need to calculate the WACC of the company and then adjust it for the new project.
WACC = 35% * 3.28% + 65% * 10.4%
WACC = 7.908%
As the new project is less risky and has an adjustment factor of -1.5%, the required rate of return for the new project will be,
WACC - new project = 7.908% - 1.5%
WACC - new project = 6.408% rounded off to 6.41%
Answer:
guaranteed loans that specify the maximum amount that a firm can owe the bank at any point in time.
Explanation:
According to my research on the different types of credit agreements, I can say that based on the information provided within the question Revolving Credit agreements are guaranteed loans that specify the maximum amount that a firm can owe the bank at any point in time. Like mentioned above, this is a loan agreement usually seen in cases of a firm borrowing money from a bank.
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