National Bark Company reported a current ratio of 2:1 last quarter and this quarter it has...
National Bark Company reported a current ratio of 2:1 last quarter and this quarter it has reported a ratio of 1:1. This means that over the last quarter
a. The change in its working capital dropped by 50 percent.
b. The company increased its net working capital
c. The company went from reporting working capital to reporting zero working capital.
d. The change in its working capital increased by 50 percent.
If we hold all other factors the same, an increase in interest rates will:
| a. |
Decrease the present value of a stream of constant payments we expect to receive. |
|
| b. |
Increase the present value of a stream of constant payments we expect to receive. |
|
| c. |
Decrease the interest revenue that a company will earn on its funds that it holds in its interest-bearing checking account. |
|
| d. |
No impact on how much a company should be willing to pay for factory equipment that is expected to significantly reduce the factory electricity costs. |
Homework Answers
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