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Gemiola [76]
3 years ago
6

Q 2.29: Val-Tek has current assets of $1,700,000 and current liabilities of $900,000. If they pay $100,000 owed to a creditor, w

hat will their new current ratio be?
Business
2 answers:
irina1246 [14]3 years ago
3 0

Answer:2 : 1

Explanation:

current ratio = current asset/current liability

If current liability was $900,000 less $100,000= $800,000

Therefore the current ratio=

$1,700,000/$800,000 =

2 : 1

KengaRu [80]3 years ago
3 0

Answer: The new current ratio is 2.125.

Explanation: The current ratio is expressed as current assets divided by current liabilities. If the company pays $100,000 due to creditors, it means the current liabilities would reduce to $800,000 ($900,000 minus $100,000). Therefore, the new current ratio will be $1,700,000 divided by $800,000 to give 2.125.

The ratio is one of the types of liquidity ratios. It is usually used to know by what extent the company can maximize the use of its current assets to settle obligations falling due within a year.

The result therefore means the company has twice the buffer to settle its obligations falling due within a year, even after paying $100,000 to its creditors.

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Horseshoe Stables is losing significant market share and thus its managers have decided to decrease the firm's annual dividend.
Naya [18.7K]

Answer:

$3.90

Explanation:

using the discount model we can calculate the stock price:

stock price = [dividend x (1 - g)] / (RRR + g) ⇒ since the growth rate is negative, we need to change additions for subtractions and vice versa.

stock price = [$0.86 x (1 - 3.5%)] / (17.8% + 3.5%) = ($0.86 x 0.965) / 0.213 = $0.8299 / 0.213 = $3.90

4 0
3 years ago
Suppose you work in Management and are collaborating with Human Resources to create a regression equation to predict turnover (p
solong [7]

We can actually deduce here that when building the Complete 2nd Order Model, one can do all except: C. Create an interaction between age and each of the levels of job satisfaction.

<h3>What is Complete Second Order Model?</h3>

The complete second degree (order) model is actually known to be a polynomial model that includes the linear terms, second degree terms and the interaction term.

The options that complete the question are:

A. Create a curvilinear term for job satisfaction

B. Create an interaction between unemployment rate and age

C. Create an interaction between age and each of the levels of job satisfaction

D. Create a curvilinear term for age.

Thus, options C is the one that wouldn't be carried out in the Complete Second Order Model.

Learn more about Human Resources on brainly.com/question/25443563

#SPJ11

7 0
2 years ago
Areas set up to attract foreign investments by allowing the iportation of raw and intermediate materials without paying tariffs
otez555 [7]
Areas set up to attract foreign investments by allowing the importation of raw and intermediate materials without paying tariffs are called "duty-free zones".
4 0
3 years ago
How does the work done by agriculture communications professionals compare to and differ from that of other marketing workers?
Phoenix [80]

Answer:

Agriculture communications professionals need to have the same basic background on marketing, covering areas such as market research, product research, and market communication.

However, they will also need to have an agriculture-related background, because they need to understand the dynamics of the agriculture business, from farm issues, to the kind of crops or produce that they can buy or sell in a specific area, to even agricultural policy.

4 0
3 years ago
The theory of ______ states that the prices of tradable goods, when expressed in a common currency, will tend to equalize across
IgorLugansk [536]
The answer is; Purchasing Power Parity.

<em>Hope this helped! :)</em>
3 0
3 years ago
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