Author: Anonymous

If a firm’s current assets and current liabilities decline, the firm had a cash inflow.​

The cost of retained earnings tends to exceed the cost of issuing new stock because of the flotation costs.

The numerical value of the quick ratio can never exceed the numerical value of the current ratio.​

The higher the “times‑interest‑earned,” the safer (i.e., more assured) should be interest payments.​

An increase in interest rates increases the net present value of an investment.​

If a firm distributes a larger proportion of its earnings, the external need for finance is reduced.​

Investments in money market mutual funds are insured up to $100,000 by the federal government.​

Investments in money market mutual funds are insured up to $100,000 by the federal government.​

A decrease in interest rates decreases the net present value of an investment.​

When individuals withdraw cash from checking accounts, the money supply is unaffected.​