Answer: Solvency
Explanation:
Long-term creditors want to ensure that a company will pay its outstanding debts. Solvency is the ability of a company to meet its long-term debts and financial obligations. Solvency is essential to staying in business as it demonstrates a company's ability to continue operations into the foreseeable future. Periodically checking your business’s solvency ratios can help ensure your company’s fiscal health. In addition to helping businesses evaluate their capital structures, solvency ratios may assist owners in determining whether internal and external equities must be redistributed.
Answer:
PV= $48,295.99
Explanation:
Giving the following information:
Future Value (FV)= $150,000
Number of periods (n)= 10 years
Interest rate (i)= 12% = 0.12
<u>To calculate the initial investment (PV), we need to use the following formula:</u>
PV= FV / (1+i) n
PV= 150,000 / (1.12^10)
PV= $48,295.99
Never gonna give you up
Never gonna let you down
Never gonna run around and desert you
Never gonna make you cry
Never gonna say goodbye
Never gonna tell a lie and hurt you
