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Oksi-84 [34.3K]
3 years ago
11

Which of the following statements is FALSE?A. Financial ratios help compare over time companies of different sizes and industrie

s, and since not all sources calculate them the same way, managers should understand how they are derived.B. Asset utilization ratios describe how efficiently, or intensively, a firm uses its assets to generate sales.C. To a firm's creditors, particularly short-term creditors such as suppliers, the higher the current ratio is, the better.D. Higher margin, turnover, leverage, and dividends all generally allow a firm to grow faster over the long run.
Business
1 answer:
dimaraw [331]3 years ago
7 0

Answer:

B. Asset utilization ratios describe how efficiently, or intensively, a firm uses its assets to generate sales

Explanation:

You might be interested in
Given the following cost and activity observations for Smithson Company's utilities, use the high-low method to calculate Smiths
OleMash [197]

Answer:

The correct answr is C.

Explanation:

Giving the following information:

Cost Machine Hours

January $52,200 20,000

February 75,000 29,000

March 57,000 22,000

April 64,000 24,500

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ highest activity units - Lowest activity units)

Variable cost per unit= (75,000 - 52,200) / (29,000 - 20,000)= 2.53

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 75,000 - (2.53*29,000)= 1600

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 52,200 - (2.53*20,000)= 1600

4 0
3 years ago
Sultan Services has million shares outstanding. It expects earnings at the end of the year of million. Sultan pays out​ 60% of i
sukhopar [10]

Answer: $73.33

Explanation:

Dividend discount model can be used to calculate the value of the shares:

= Earnings paid out / (Cost of equity - growth rate)

Earnings to be paid out:

= 60% * 5,500,000

= $3,300,000

Value of shares:

= 3,300,000 / ( 9% - 6%)

= $110,000,000

Share price:

= Value of shares / Number of shares outstanding

= 110,000,000 / 1,500,000

= $73.33

7 0
3 years ago
For a normal good, if the price of a substitute good decreases then:
geniusboy [140]

Answer:

(B) the demand curve shifts leftward while the supply curve stays the same.

Explanation:

"Substitutes are goods where you can consume one in place of the other. The prices of complementary or substitute goods also shift the demand curve. When the price of a good that complements a good decreases, then the quantity demanded of one increases and the demand for the other increases. When the price of a substitute good decreases, the quantity demanded for that good increases, but the demand for the good that it is being substituted for decreases. "

Reference: Khan Academy. “Price of Related Products and Demand.” Khan Academy, Khan Academy, 2019

8 0
3 years ago
Suppose that government officials have set an emissions tax to reduce pollution. Assume that the optimal tax would be $1,500, bu
Mariulka [41]

Answer: there will be too much pollution

Explanation:

From the question, we are informed that government officials have set an emissions tax to reduce pollution and that the optimal tax should have been $1,500 but government officials have set the tax equal to $500.

It should be noted that due to the fact that the optimal tax has been set below the equilibrium, this will lead to a rise in pollution as the people will be aware that they're paying less than the optimal level which will lead to more pollution. An increase in the optimal tax will have help in reducing the pollution.

8 0
3 years ago
Suppose Scott has a budget of $56 that he spends on movies (Q1) and roller skating (Q2). The price of movie tickets recently inc
8090 [49]

Answer:

1.6 Q1 + 0.875 Q2 = $56

Explanation:

Budget constraint equation represents the total budget allocation to different activities under consideration.

old Budget Constraint

Q1 + Q2 = $56

New Budget Constraint

(Q1)*8/5 + (Q2)*7/8 = $56

(Q1)*1.6 + (Q2)*7/8 = $56

(Q1)*1.6 + (Q2)*0.875 = $56

1.6 Q1 + 0.875 Q2 = $56

So best answer made based on data available.

5 0
3 years ago
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