Homework Answers
Answer 1)
Option C is correct.
Liquid Assets is the assets which is readily available to be converted into cash. These assets can be quickly converted into cash. So It does not include Fixed or Intangible Assets. Investory is also a liquid asset but comperatively, Accounts Receivable is more liquid.
Answer 2)
Option A is correct. A proportionate mixture of Debt and Equty in capital is called Capital Structure. When Capital is structured to maximize the shareholders wealth, we consider different proportion of Debt and Equity to get to an optimum mix of Capital, called Capital Structure.
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flexibility for future financing will HRI have if is issued at
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