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Author Question: Your banker is concerned about your company's liquidity. Which of the following actions would ... (Read 191 times)

darbym82

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Question 1

Which type of ratio measures how effectively the firm uses its resources to generate income?
◦ Activity
◦ Liquidity
◦ Profitability
◦ Leverage
◦ Market

Question 2

Your banker is concerned about your company's liquidity. Which of the following actions would increase the firm's current ratio and ease the bank's concern?
◦ Sell some inventory for cash.
◦ File for bankruptcy.
◦ Call your convertible bonds and thereby force the bond holders to become shareholders.
◦ Sell some of the firm's long-term bonds and purchase marketable securities.
◦ Sell long-term bonds to purchase new machinery.


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Marked as best answer by darbym82 on Apr 25, 2021

wshriver

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darbym82

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Reply 2 on: Apr 25, 2021
Excellent


amit

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

 

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