Current ratio is a comparison of current assets to current liabilities, calculated by dividing your current assets by your current liabilities.
The quick ratio compares the total amount of cash + marketable securities + accounts receivable to the amount of current liabilities.
A. Inventory would be a factor in both of these ration (assets). In both of these industries, inventory would be low. You cannot readily stockpile energy and burgers are perishable items.
B. It is true that both of these industries would have low outstanding accounts receivable because people will need their power to survive and fast food places don't offer credit.
C. These two industries deal with cash mainly. Cash doesn't have to be physical currency, but accounts that can easily be paid.
D. Low current and quick ratios are actually signs of good management not poor management.
All of the above are correct EXCEPT answer D.
Answer:
By definition, the price elasticity of demand equals the percentage changes in the quantity demanded divided by the percentage changes in the price. There is an opposite relationship between the demand elasticity and the slope of the demand curve.
Answer:
Intrinsic value of Stock C is 300
Explanation:
given data
expected pay dividend = $3
growth rate of dividends = 9%
stock C require a rate of return = 10%
stock D require a rate of return = 13%
solution
we get here intrinsic value by the DDM method
intrinsic value = Upcoming Dividend ÷ ( Required rate of return - Growth rate of stock ) .................1
intrinsic value = 
intrinsic value = 
intrinsic value = 300
so intrinsic value of Stock C is 300
Answer:
The marginal return of production of the second worker or marginal product of the second worker is 10 cones.
Explanation:
One worker can make 15 cones of ice cream in an hour.
Two workers can make 25 cones in the same time.
While three workers can make 30 cones in an hour.
The marginal return of the production of the second worker is the contribution of the second worker in the total output.
Marginal return
= 25 cones - 15 cones
= 10 cones
