--%>
Assignment Help - homework help

Which ratios would banker is interested for short-term loan

Which ratios would banker is most interested while assuming whether to approve an application for short-term business loan? Illustrate.
Bankers and other lenders employ liquidity ratios to distinguish whether to extend short-term credit to a firm. Liquidity ratios measure the capability of a firm to meet its short-term obligations. These ratios are vital because failure to pay such obligations can lead to bankruptcy. In general, the higher the liquidity ratio, the more capable a firm is to pay its short-term obligations.

   Related Questions in Finance Basics

  • Q : Describe Form 22 Form 22 : It’s a

    Form 22: It’s a department’s request to transfer money to the Architectural Revolving Fund (example, for building enhancements), reviewed by the Department of Finance.

    		•
  • Q : Describe the financial leverage effect

    Describe the financial leverage effect and what causes it? Explain the potential benefits and negative consequences of high financial leverage? Financial leverage is the additional volatility of overall income caused through the presence of fix

    		•
  • Q : Which ratios would banker is interested

    Which ratios would banker is most interested while assuming whether to approve an application for short-term business loan? Illustrate.Bankers and other lenders employ liquidity ratios to distinguish whether to extend short-term credit to a firm

    		•
  • Q : Meaning of invisible hand Normal 0

    Normal 0 false false

  • Q : What is Finance Conversion Code listing

    Finance Conversion Code (FCC) Listing: This is a listing distributed by the State Controller's Office to the departments each spring, that is based on departmental coding updates, will state how the salaries and wages detail will be d

    		•
  • Q : Question based on imposesing tax Given

    Given equations describe market for widgets                         Demand: P = 10 - Q Supply: P = Q - 4

    Q : Making capital structure decisions In a

    In a perfect capital market, what advice would you give a corporate financial manager on making capital structure decisions? Justify your advice. How and why would your advice change as real world capital market imperfections are introduced?

    Q : Fin 335 International finance 1. The

    1. The exchange rate is 1.22 Swiss francs per U.S. dollar. How many U.S. dollars are needed to purchase 1,500 Swiss francs? [$1,229.51] 2. You are planning an extended trip to Hong Kong. You have located some housing

    		•
  • Q : What is the efficiency factor Normal 0

    Normal 0 false false

  • Q : All rates are stated annually with

    1.      Assume the following (all rates are stated annually with semiannual compounding):