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# Current assets less current liabilities

1. Current assets less current liabilities equal

a. net working capital
b. quick ratio
c. current ratio
d. profit ratio

2. A company collects 70% of its sales during the month of the sale, 20% one month after the sale, and 10% 2 months after the sale. The compnay expects sales of \$10,000 in Aug., \$20,000 in Sept., \$30,000 in Oct., and \$40,000 in Nov. How much money is expected to be collected in Oct.?

a. 21000
b. 25000
c. 26000
d. 28000

3. You are considering the purchase of a company's perpetual preferred stock, which pays a perpetual annual dividend of \$8 per share. If the appropriate discount rate for the investment is 14%, what is the price of one share of this stock?

a. 7.02
b. 36.43
c. 57.14
d. 80

Dear Friend,

I am highlighting the answers below:::

1. Current assets less current liabilities equal

a. net working capital
b. quick ratio
c. current ratio
d. profit ratio

2. A company collects 70% of its sales during the month of the sale, 20% one month after the sale, and 10% 2 months after the sale. The compnay expects sales of \$10,000 in Aug., \$20,000 in Sept., \$30,000 in Oct., and \$40,000 in Nov. How much money is expected to be collected in Oct.?

a. 21000
b. 25000
c. 26000
d. 28000

3. You are considering the purchase of a company's perpetual preferred stock, which pays a perpetual annual dividend of \$8 per share. If the appropriate discount rate for the investment is 14%, what is the price of one share of this stock?

a. 7.02
b. 36.43
c. 57.14
d. 80

I hope the above helps...

Regards...