Blog

If accounts receivable are collected, the quick ratio increases.​

Accounts payable are illustrative of liabilities that spontaneously vary with the level of sales.​

If a bank pays 5 percent compounded semi‑annually, the true rate of interest is less than 5 percent annually.​

Regression analysis assumes that inventory as a percent of sales is constant.​

The weighted cost of capital includes the cost of all the components of a firm’s capital structure.

Certainty equivalents adjust an investment’s cash outflows in terms of a risk-free return.​

Regression analysis assumes that inventory as a percent of sales is constant.​

Debt financing is more risky for firms than preferred stock financing because

When cash is deposited in a checking account, the reserves of commercial banks are increased.​

The sum of a firm’s liabilities and equity equals the sum of its assets.​