If the only information you are given about Ryan Corporation, a ...

[Chloeellawright]

If the only information you are given about Ryan Corporation, a large public company in business for many years, is that it has a current ratio of 2.9, what could you infer from this?
 
  A) It can meet the short-term obligations without any difficulty.
  B) You could determine that Ryan has a liquidity problem because Ryan's current ratio is greater than 2 which is the rule of thumb for the current ratio.
  C) Nothing, you would also need the current ratio's from the last few years of the S&P 500 Index.
  D) You could determine that Ryan has an activity problem because Ryan's current ratio is greater than 2 which is the rule of thumb for the current ratio.

Question 2

The cost to maturity of existing bonds reflects the rate of return required by the market.
 
  Indicate whether the statement is true or false

[mjbamaung]

Answer to Question 1

A

Answer to Question 2

FALSE

[Chloeellawright]

TYSM

[alexanderhamilton]

Excellent