Question
--Company A has a current ratio of 1.5 and quick ratio of 1.0. Company B has a current ratio of 2.0 and quick ratio of
--Company A has a current ratio of 1.5 and quick ratio of 1.0. Company B has a current ratio of 2.0 and quick ratio of 1.1. Company A has better liquidity than Company B.
--A treasury bond is a government issued bond.
--The coupon rate multiplied by par is the amount of money the bond holder will receive each year from the bond issuer.
--A beta of 1.2 would equate to the market as a whole.
T/F
--The higher the standard deviation the higher the risk.
--The present value for a project with a cost of capital of 11% and expected cash flows of $5000 per year for the next 5 years is $3695.90.
--An EBIT of $5,000,000, interest expense of $1,000,000, tax rate 40%, and 50% dividend payout would yield an increase to retained earnings of $1,200,000
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