Given:
Cash = $316
Accounts receivable = $687
Accounts payable = $709 (Liabilities)
Inventory = $2,108 (Assets)
Total assets = Cash + Receivables
= 316 + 687 = $1,003
Liabilities = $709
By definition, the quick ratio is
QR = (Assets - Inventory) / Liabilities
= (1003 - 2108)/709
= -1.5585
This means that the gift barn is over-leveraged and struggling to grow.
Answer: -1.56
Answer:
B) higher than the interest rate.
Explanation:
In the case when the business wants to borrow for a project so the rate of return would be greater than the rate of interest
And in the case when the rate of interest is lesser than the expected return so the investment would look attractive due to this there is a rise in the borrowing for that investment
Hence, the option b is correct
Numbers of suppliers in a purely competitive market dictate how easy it is to start a business or transform it in that sector.
Explanation:
Entry an d Exit in a business sector means the ease of starting or transforming a business that is involved in a particular market sector.
In a purely competitive market the business is dictated by the market standards set by the completion of the various companies vying for a market share between each other.
The harder the competition at the top level, the harder it is for a new business to come up, similar is the case for when one or two companies dominate the hegemony in which case it is hard to grab a market share for the new entrant in the market.
Answer:
the firm will become more reasky as their Weighted-average cost-of-capital will change over time based on market condition but the management wil take project based on obsolete information
Thus, the WACC of the company will increase without the management notice this because, lender will use higher rate to make up for the change of failling Also, the shares wil trade at a lower value as is not maximizing the value of the firm.
Explanation:
