• 2022-06-06
    The indicator ratio that should be used to assess a company's ability to meet its short-term obligations is its:
    A: liquidity.
    B: debt.
    C: profitability.
    D: capital structure.
  • A

    内容

    • 0

      Company A’s capital employed and its adjusted profit is $800m and $500m respectively. Its target capital structure is 75% equity 25% debt. The cost of equity is 18% and pre-tax cost of debt is 12%. What is the value of EVA using Economic Value Added approach?

    • 1

      The financial ratios that measure a firm's ability to pay its short-term debts are called A: leverage ratios. B: liquidity ratios. C: equity ratios. D: profitability ratios.

    • 2

      Liquidity refers to a company's ability to pay its long-term obligations.

    • 3

      Which one of the following is defined as a firm's short-term assets and its short-term liabilities? A: debt B: working capital C: investment capital D: net capital

    • 4

      () is the ratios that measure a firm's ability to meet short-term obligations. A: liquidity ratios B: leverage ratios C: coverage ratios D: profitability ratios