Firm over-invests in net working capital, Finance Basics

+44 141 628 6080
[email protected]

Firm over-invests in net working capital

Which of the following is most likely to occur if a firm over-invests in net working capital?

a. The current ratio will be lower than it should be.

b. The return on investment will be lower than it should be.

c. The times interest earned ratio will be lower than it should be.

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Firm over-invests in net working capital

Reference No:- TGS042602

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : How much profits would increase or decrease

Prepare computations showing how much profits would increase or decrease as a result of purchasing the parts from the outside supplier rather than making them inside the company.

Q : Determining the risk premium on the market

What is the risk premium on the market? What is the required return on an investment with a beta of 1.5? If an investment with a beta of .8 offers an expected return of 9.8%, does it have a positive NPV?

Q : Provide example of government task that would be efficient

Is there any risk to outsourcing? Explain. (e) For a task that is already outsourced, could it make sense to bring it back in-house at some future time? Explain.

Q : Assurance in the context of an entity internal controls

The concept of reasonable assurance in the context of an entity's internal controls recognizes that :

Q : Firm over-invests in net working capital

Which of the following is most likely to occur if a firm over-invests in net working capital?

Q : Identify two market structures in product development

Identify two market structures in which product development and product differentiation is an important type of competition for firms operating in those market conditions.

Q : What is mercedes''s total 2013 deduction for automobile use

Mercedes is an employee of MWH company and drives her car 12,000 miles a year for business and 3,000 miles a year for commuting and personal use. She is not reimbursed by her employer. She wants to claim the largest tax deduction possible for busi

Q : Would minimum-wage law help entry-level workers

Would a minimum-wage law help entry-level workers in some market structure; while hurting them in another market structure? Explain.

Q : Estimating zero coupon bonds

Suppose your company needs to raise $20 million and you want to issue 30-year bonds for this purpose. Assume the required return on your bond issue will be 7 percent, and you're evaluating two issue alternatives: a 7 percent annual coupon bond and

1945309

Questions
Asked

3,689

Active Tutors

1420078

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Firm over-invests in net working capital

Reference No:- TGS042602

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : How much profits would increase or decrease

Q : Determining the risk premium on the market

Q : Provide example of government task that would be efficient

Q : Assurance in the context of an entity internal controls

Q : Firm over-invests in net working capital

Q : Identify two market structures in product development

Q : What is mercedes''s total 2013 deduction for automobile use

Q : Would minimum-wage law help entry-level workers

Q : Estimating zero coupon bonds

Discuss use of electronic devices like social media

Defining characteristic of permissive-indulgent parents

Compare independent variables, dependent variables

Why consciousness is an especially important

Areas mentioned specifically as wanting to join the eeu

Patient tokala insists that he never dreams

Introduce the instrument you are focusing on

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Firm over-invests in net working capital

Reference No:- TGS042602

Recent Questions Asked Finance Basics

Q : How much profits would increase or decrease

Q : Determining the risk premium on the market

Q : Provide example of government task that would be efficient

Q : Assurance in the context of an entity internal controls

Q : Firm over-invests in net working capital

Q : Identify two market structures in product development

Q : What is mercedes''s total 2013 deduction for automobile use

Q : Would minimum-wage law help entry-level workers

Q : Estimating zero coupon bonds

Asked Questions