This topic contains a solution. Click here to go to the answer

Author Question: A firm has a current ratio of 1; in order to improve its liquidity ratios, this firm might ________. ... (Read 132 times)

Medesa

  • Hero Member
  • *****
  • Posts: 507
A firm has a current ratio of 1; in order to improve its liquidity ratios, this firm might ________.
 
  A) improve its collection practices by providing extended credit policy
  B) improve its collection practices and pay accounts payable, thereby decreasing current liabilities and decreasing the current and quick ratios
  C) decrease current liabilities by utilizing more long-term debt, thereby increasing the current and quick ratios
  D) increase inventory, thereby increasing current assets and the current and quick ratios

Question 2

From a bond issuer's perspective, the IRR on a bond's cash flows is its cost to maturity; from the investor's perspective, the IRR on a bond's cash flows is the yield to maturity (YTM).
 
  Indicate whether the statement is true or false



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

shewald78

  • Sr. Member
  • ****
  • Posts: 340
Answer to Question 1

C

Answer to Question 2

TRUE




Medesa

  • Member
  • Posts: 507
Reply 2 on: Jul 11, 2018
Excellent


Jossy

  • Member
  • Posts: 336
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

For a complete list of videos, visit our video library