When a company sells land for cash and recognizes a $25,000 gain:
A. Its acid-test ratio decreases.
B. Its current ratio decreases.
C. Its debt to equity ratio decreases.
D. Cannot determine from the given information.
Ans: C. Its debt to equity ratio decreases.
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Boulder Furniture has bonds outstanding that mature in 13 years, have a 6 percent coupon, and pay interest annually. These bonds have a face value of $1,000 and a current market price of $1,040. What is the company's aftertax cost of debt if its tax rate is 32 percent?
A. 2.97 percent B. 3.24 percent C. 3.78 percent D. 5.21 percent E. 5.53 percent
According to expectancy theory of motivation, instrumentality is the likelihood that:
a. greater performance will lead to more rewards. b. I have the motivation to make this sale. c. greater effort will lead to greater performance. d. my performance be rewarded with something that I value. e. given my current level of effort and performance, I will be rewarded.