Table 152 the Company Earns 5 Percent on Current Assets

question 178

Multiple Choice

Table 15.2 The company earns 5 percent on current assets and 15 percent on fixed assets. The firm's current liabilities cost 7 percent to maintain and the average annual cost of long-term funds is 20 percent.
-The firm's initial ratio of current assets to total assets is ________. (See Table 15.2)

• A) 3:1
• B) 1:3
• C) 2:1
• D) 2:3

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Definitions:

Market Basket

A selected set of goods and services used to track inflation and the cost of living or to define a beneficiary's set of consumable products.

CPI

The Consumer Price Index is an indicator that assesses the average cost of a selected group of consumer items and services, including food, medical care, and transportation, by looking at their weighted average prices.

Consumer Price Index

A gauge that tracks the average variation over periods in the costs urban buyers incur for a defined set of consumer products and services.

Consumer Price Index

A gauge that tracks the average variation over time in the prices urban consumers pay for a collection of consumer goods and services.