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Author Question: The current ratio and the quick ratio both help measure a firms liquidity. The quick ratio measures ... (Read 55 times)

M1ch3a

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on: Aug 7, 2023

Question 1

The basic earning power ratio (BEP) reflects the earning power of the firm’s assets inclusive of the effects of leverage and taxes. Therefore, this ratio measures the net earning power of the firm reflecting the magnitude of the leverage employed.

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Question 2

The current ratio and the quick ratio both help measure a firm’s liquidity. The quick ratio measures the relationship of a firm’s current assets to its current liabilities, while the current ratio subtracts inventory from other current assets.

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Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by M1ch3a on Aug 7, 2023

koswald

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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M1ch3a

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Reply 2 on: Aug 7, 2023
Gracias!

covalentbond

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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