Even though Firm A's current ratio exceeds that of Firm B, Firm B's quick ratio might exceed that of A. However, it A's quick ratio exceeds B's, then we can be certain that A's current ratio is also larger than Bs. a. True b. False   Although a full liquidity analysis requires the use of a cash budget, the current and quick ratios provide fast and easy- to-use estimates of a firm's liquidity position. a. True b. False

The rationale for funds transfer pricing is that there are: Group of answer choices D. Less chances for controversy in organizations B. Controls that can be exercised over the dynamics of yield curves C. Controllable interest rate risks removed from business results A. Economies of scale in managing interest rate risk

All the statements are incorrect regarding current ratio except? a. The more predictable a firm's cash flows, the higher the acceptable current ratio. b. A higher current ratio indicates a higher return on equity. c. The more predictable a firm's current ratio, the higher the clyrent liabilities. d. A higher current ratio indicates a greater degree of liquidity.

When a capital investment is expected to provide unequal annual cash inflows, the payback period cannot be calculated.True  or False

1.1. 1.7. Which item should be included on cash flow estimation in capital budgeting analysis? a. interest b. sunk cost d. cannibalization c. depreciation Other things held constant, which of the following event is most likely to increase WACC? a. increase tax rate b. increase stock price c. increase in the use of debt d. increase in dividend payout ratio Which of the following is not a means by which ownership implies corporate control? a. appointing a CEO b. proxy fight c. preemptive right d. classified stock 1.3. DA