Please select the option that best analyzes the WORKING CAPITAL for our example company. The working capital represents the amount of current assets available to settle our current liabilities. Our example company will definitely be able to pay their current liabilities as they come due. The working capital represents the amount of current assets available to settle our current liabilities. The current liabilities are not due for more than two years so our current asset amounts are inconsequential. The working capital represents the amount of current assets available to settle our current liabilities. Our example company will be unable to pay their current liabilities as they come due. The working capital represents the amount of current assets available to settle our current liabilities. We cannot determine if our example company will be able to pay their current liabilities as they come due.
Cost of Debt, Cost of Preferred Stock
This article deals with the estimation of the value of capital and its components. we'll find out how to estimate the value of debt, the value of preferred shares , and therefore the cost of common shares . we will also determine the way to compute the load of every cost of the capital component then they're going to estimate the general cost of capital. The cost of capital refers to the return rate that an organization gives to its investors. If an organization doesn’t provide enough return, economic process will decrease the costs of their stock and bonds to revive the balance. A firm’s long-run and short-run financial decisions are linked to every other by the assistance of the firm’s cost of capital.
Cost of Common Stock
Common stock is a type of security/instrument issued to Equity shareholders of the Company. These are commonly known as equity shares in India. It is also called ‘Common equity
Working Capital is the difference between the current assets and current liabilities of a company. It represents whether a firm would be able to meet its short term debt obligations or not. A positive working capital occurs when, current assets > current liabilities and negative working capital occurs when, current assets < current liabilities.
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