Question
The following information is provided for JoJo Inc. Year 2008 2010 2012 2014 2016 Current ratio 1 1.2 1.2 1.1 1 Quick ratio .5 .6
The following information is provided for JoJo Inc.
Year 2008 2010 2012 2014 2016
Current ratio 1 1.2 1.2 1.1 1
Quick ratio .5 .6 .5 .4 .6
EM 1 2 2.5 4 3
TIER 6 6 7 8 6
TAT 2 3 2 3 2
PM .10 .12 .11 .13 .14
Firm value $100 $150 $180 $140 $160
What it the optimal capital structure, as measured by TDR?
a. .40
b. 0
c. .50
d. .60
e. 1
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Working Capital Management And Finance A HandBook For Bankers And Finance Managers
Authors: R.K.Gupta, Himanshu Gupta
4th Edition
1645875547, 9781645875543
