Which ratios would banker is most interested

Which ratios would banker is most interested while considering whether to approve an application for short-term business loan? Describe.
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.

View Complete Question

Related Questions in Finance Basics

Q : Describe the effect of stock dividends

Describe the effect of stock (not cash) dividends and stock splits onto the market price of common stock? Why do corporations state stock splits and stock dividends? Stock splits & stock dividends decrease the price per share of the common

Q : Define Schedule Schedule : The

Schedule: The explanation of an appropriation in the Budget Bill or Act, exhibiting its distribution to each of the programs, categories, or therefore projects. OR The supplemen

Q : Define Subventions Subventions :

Subventions: Typically employed to explain amounts of money expended as local assistance based on the formula, in contrast to grants which are provided selectively and frequently on a competitive basis. For the aim of Article XIII B, state subventions

Q : Graphically combined transactions and

Normal 0 false false

Q : Explain 3-year Expenditures and

3-year Expenditures and Positions: The display at the beginning of each departmental budget which presents the different departmental programs by title, dollar totals, places, and source of funds for the past, current, and budget years.

Q : What is Fed prime goal in setting

Normal 0 false false

Q : Describe advantages and the

Describe advantages and the disadvantages of new stock issue? A new stock issue increase funds and decreases the riskiness of the firm. This also tends to send a negative signal to the market as many investors believe a company would just sell

Q : Why riskiness of portfolios is

Normal 0 false false

Q : Cyclical unemployment Suppose that in a

Suppose that in a specific year the natural rate of unemployment is 5 percent and the actual rate of unemployment is 9 percent. Employ Okun's law to fin out the size of the GDP gap in percentage-point terms. If the nominal GDP is $500 billion in that year, how much ou

Q : Domestic opportunity cost of production

Hypothetical production possibilities tables for New Zealand and Spain are given below 639_Hypothetical production possibilities.png

Discover Q & A

Leading Solution Library

Avail More Than 1435368 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1953812
Asked

3,689

Active Tutors

1435368

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment