Question
Having problems understanding the following problems. need explanation 1.Coca-Cola has a current ratio of 1.02 while Pepsi has a current ratio of 1.14. What does
Having problems understanding the following problems. need explanation
1.Coca-Cola has a current ratio of 1.02 while Pepsi has a current ratio of 1.14. What does this mean about the two beverage companies?
Coca-Cola's receivablesare little more liquid than PepsiCo'sreceivables.
Coca-Cola isslightlyless liquid that PepsiCo. Coca-Cola's assets exceed its liabilities, but Pepsi's assets exceed its liabilities by more.
PepsiCo'sreceivablesare little moreliquid thanCoca-Cola'sreceivables.
PepsiCo isless liquid that Coca-Cola. Pepsi's assets exceed its liabilities, but Coca-Cola's assets exceed its liabilities by more.
- You can buy a $50 savings bond today for $25 and redeem the bond in 10 years for its full face value of $50. You could also put your money in a money-market account that pays 7% interest per year. Which option is better, assuming they are of equal risk?
The money market and savings bond both earn 7% interest, so they are equal in value.
The money-market account is better because it pays more interest.
The savings bond is better because it earns a higher interest rate.
The money-market account is better because it requires a smaller investment.
Your daughter is born today and you want her to be a millionaire by the time she is 35 years old. You open an investment account that promises to pay 12% per year. How much money must you deposit each year, starting on her 1st birthday and ending on her 35th birthday, so your daughter will have $1,000,000 by her 35th birthday?
- $5,777
- $2,317
- $9,450
- $3,455
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