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Vikentia [17]
2 years ago
3

A company has a cash ratio of 2.3. what does this​ imply?

Business
1 answer:
sweet [91]2 years ago
3 0
<span>This implies that the company has an unnecessarily large amount of cash supply. Generally cash ratio is defined as ratio of a company's total cash and cash equivalents to its current liabilities.Then cash ratio can be determined by using the formula which is (Cash + Cash equivalents) Ă· Current liabilities.If cash &cash equivalents > current liabilities,it means the company has more cash.If cash &cash equivalents= current liabilities,it means the company has enough cash to pay the liabilities..If cash &cash equivalents<current liabilities,it means company utilized its assets well to earn profits.</span>
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saw5 [17]
<span>Correct answer is "C". An opportunity cost is the the loss of the next best alternative when one alternative is chose. If two choices are mutually exclusive (you can have one but not the other), then choosing one means the loss of the other activity is the opportunity cost. Opportunity cost is not merely the money or financial cost difference between two options (choice b) but also covers the lost time (option d) or pleasure (option a) as another option may provide more of either (therefore having increased utility).</span>
6 0
2 years ago
The text identifies three methods for estimating the cost of common stock from retained earnings: the CAPM method, the DCF metho
wlad13 [49]

Answer:

A. True

Explanation:

This is true, the estimate we get of the cost of common stock from retained earnings is not fully accurate. So we often use all three methods and then average out to use a reasonable estimate.

6 0
2 years ago
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Verizon [17]

Answer:

E) None of the above

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Elaine's share = (20/100) × $30,000

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