Current ratio is a mathematical formulas which make use of a company's financial information for comparison purposes
<h3>What is current ratio?</h3>
The current ratio is the one that measures a company's ability to cover its short-term obligations with its current assets. It indicate whether or not a company is able to meet its short term financial obligations.
Current ratio is computed by dividing the current asset over current liability. It compare a company's financial information.
Hence, indicators created by mathematical formulas using a company's financial information for comparison purposes are called current ratio.
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Answer:
$29.70
Explanation:
Retention ratio = 1 - payout ratio
= ( 1 -0.5 )
= 0.5
Growth rate, g = ROE × Retention ratio
= 0.15 × 0.5
= 0.075
= 7.5%
Required return = Risk - free rate + [ Beta × (Market rate- risk-free rate) ]
= 2.5% + 1.44 × (11% - 2.5%)
= 14.74%
Intrinsic value = 
=
= 29.69 ≈ $29.70
Answer:
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Answer:
$39600
Explanation:
One year is made up of 12 months.
in oder for us to know how many months make up 3 years,we multiply 12 months by 3years and the answer is 36 months.
36months = 3years
we workout
$1,100×36 months =$39,600
This shows that, by three years David would have paid his ex-wife $39,600