1. The Net Working Capital (NWC) Ratio and the Current Ratio (CR) take values that are closely related. Which of the following values represents this close relationship?
   1. NWC>0, CR>1
   2. NWC=0, CR<1
   3. NWC<0, CR=1
   4. We need more information to answer the question
   5. None of the above

Please try to explain it to me

2. It is argued that the following ratios should be used in determining the long-term financial situation of the firm:
   1. Ratio of owners equity to liquid assets, Ratio of owners equity to short-term investments and Ratio of owners equity to short-term liabilities
3. 2. Ratio of fixed assets to short-term liabilities
   3. The EBITDA / interest expense ratio
   4. All of the above
   5. None of the above

3. In calculating a companys cost of capital an analyst should use as weights:

1. Book values
2. Target values
3. Market values
4. All of the above
5. None of the above

4.Consider two bonds, A and B. Both bonds presently are selling at their par value of $1,000. Each pays interest of

$120 annually. Bond A will mature in 5 years while bond B will mature in 6 years. If the yields to maturity on the two bonds change from 12% to 10%:

6. both bonds will increase in value, but bond A will increase more than bond
7. both bonds will increase in value, but bond B will increase more than bond
8. both bonds will decrease in value, but bond A will decrease more than bond
1. both bonds will decrease in value, but bond B will decrease more than bond A
10. none of the above

Please analytical answers.Also write and the formula for question 4