Which of the following statements is most correct?
A. For small companies, long-term debt is the principal source of external financing
B. The current assets of the typical manufacturing firm account for over half of its total assets
C. Strict adherence to the maturity matching approach to financing would call for all current assets to be financed solely with current liabilities
D. Similar to capital structure management, working capital management requires the financial manager to make a decision and not address the issue again for several months
Answer: Option B
This Question Belongs to Commerce >> Business Finance
The appropriate ratio for indicating liquidity crisis is
A. Operating ratio
B. Sales turnover ratio
C. Current ratio
D. Acid test ratio
A. Net present value method
B. Internal rate of return method
C. Profitablity index method
D. None of the above
A. a-4, b-3, c-1, d-2
B. a-3, b-4, c-1, d-2
C. a-4, b-3, c-1, d-2
D. a-3, b-2, c-4, d-1
Which one of the following assumptions is not included in the James E. Walter Valuation model?
A. All financing by retained earnings only
B. No change in the key variables such as EPS and DPS
C. The firm has finite life
D. All earnings are either distributed as dividends or invested internally immediately
Join The Discussion