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Which is the most conservative liquidity ratio? a. The cash ratio b. The quick ratio c. The cash coverage ratio d. The profit margin e.

Which is the most conservative liquidity ratio?

a.

The cash ratio

b.

The quick ratio

c.

The cash coverage ratio

d.

The profit margin

e.

The current ratio

Clear my choice

Consider a perpetuity and an annuity with the same fixed cash flow and positive interest rates.

Compare the present values of the two cash flow streams. Which one is greater?

a.

It depends on the duration of the annuity (N)

b.

It depends on the level of the cash flow

c.

The present value of the annuity is greater than the present value of the perpetuity.

d.

It depends on the level of the interest rates

e.

The present value of a perpetuity is greater than the present value of the annuity.

Clear my choice

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