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3 years ago

Verify why the farmers' credit union chose to increase Farm B's line of credit but not Farm A's in the following scenario:

Business

1 answer:

Shkiper50 [21]3 years ago

5 0

Answer:

see below

Explanation:

he farmers must have considered the ability to repay back loans when making the decision. The ability of a business to meet its current obligations is expressed by the current ratio.

The current ratio or working capital ratio communicates a firm's ability to repay debts as they become due. The higher the ratio, the better.

the current ratio is calculated as current assets/current liabilities

For Firm A,

current ratio =$150,000/ $125,000.

=1.2

For Firm B,

current ratio =$100,000/$75,000

=1.333

Firm B has a better current ratio than Firm A. Firm B is in a better position to repay loans compared to Firm A.

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You invested $30,000 in BOA, $20,000 in Best Buy, and $50,000 in Harley-Davidson for your portfolio. Betas are 1.8, 1.05 and 1.5

steposvetlana [31]

Answer:

Beta= 1.5

Explanation:

First, we need to calculate the proportional investment of each asset:

Total investment= $100,000

BOA= 30,000/100,000= 0.3

Best Buy= 20,000/100,000= 0.2

Harley-Davidson= 50,000/100,000= 0.5

To calculate the beta of the portfolio, we need to use the following formula:

Beta= (proportion of investment A*beta A) + (proportion of investment B*beta B)...

Beta= (0.3*1.8) + (0.2*1.05) + (0.5*1.5)

Beta= 1.5

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2 years ago

Classifying Cash Flows Identify the type of cash flow activity for each of the following events (operating, investing, or financ

Sphinxa [80]

Answer:

Cash Flow activities for each event are:

a. Redeemed bonds (Financing activity)

b. Issued preferred stock (Financing activity)

c. Paid cash dividends (Financing activity)

d. Net income (Operating activity)

e. Sold equipment (Investing activity)

f. Purchased treasury stock (Financing activity)

g. Purchased patents (Investing activity)

h. Purchased buildings (Investing activity)

i. Sold long-term investments (Investing activity)

j. Issued bonds (Financing activity)

k. Issued common stock (Financing activity)

NOTE

-Operating activities entails cash activities related to net income.

-Investing activities encompasses cash activities related to non-current assets.

-Financing activities include cash activities related to owners' equity and non-current liabilities

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3 years ago

You have saved $120,000 for your child to attend college. If it is in an account earning an annual rate of 8%, how much can yo

harkovskaia [24]

Answer:

I will take $36,230.5 to pay for the education of child.

Explanation:

Cash Invested in the saving account will earn a return of 8% each year and this amount could be withdrawn by the me to pay for the education of child.

We will use following formula to calculate the annual payments

P = r ( PV ) / [ 1 - ( 1+ r )^-n ]

where

PV = amount of investment = $120,000

r = rate of return = 8%

n = number of period = 4 years

P = 8% ( 120,000 ) / [ 1 - ( 1 + 0.08 )^-4 ]

P = 36,230.5

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3 years ago

For a stock to be in equilibrium, that is, for there to be no long-term pressure for its price to depart from its current level,

Alex_Xolod [135]

Answer:

c.the expected future returns must be equal to the required return.

Explanation:

When the stock is at equilibrium than the intrinsic value of the stock is equivalent to the market price of the stock that depicts that the expected returns which held in the future should be equivalent to the required return

Therefore the option c is correct

And, the other options that are mentioned in the question are incorrect

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3 years ago

School teachers, counselors, and job placement centers can help you _____. a. place a classified job advertisement b. identify j

Dimas [21]

Answer:

Identify job leads and set up interviews.

Explanation:

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3 years ago

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