Net working capital is usually negative in healthy firm

Assignment Help Financial Management

Reference no: EM131855942

Which one of the folowing is a false statement?

(A) Net working capital is equal to current assets minus current liabilities.

(B) It means that the cash that will become available over the next 12 month exceeds the cash that must be paid over the same period.

2. For each of the following statements indicate whether the statement is true or false and explain why.

a) Under the classical tax system dividends are effectively taxed at the higher of the personal or corporate tax rate.

b) Under the imputation tax system dividends are effectively taxed at the lower of the personal or corporate tax rate.

c) A company can pay a dividend only if it is currently earning profits.

d) The residual dividend policy is used by most companies.

Reference no: EM131855942

Questions Cloud

Present a discussion of what your team learned : Write a comprehensive summary of these articles. Present a discussion of what your team learned from this exercise. (500 words)

How well does the company manage working capital : How well does the company manage working capital? What are the strengths and weaknessesof the company's financial position?

Firm in mexico that just bought shirts from a firm : You are a firm in Mexico that just bought shirts from a firm in Thailand.

Medical clinic that provides health care : A free medical clinic that provides health care for the under-insured.Your next patient, Margaret R., age 40, is a regular of the clinic and the last patient

Net working capital is usually negative in healthy firm : Net working capital is equal to current assets minus current liabilities. Net working capital is usually negative in a healthy firm.

Analyze how organization can maximize profitmaking potential : Analyze how your organization can maximize their profit-making potential and increase their presence within the market served by the product.

Hospital with a diagnosis of acute cva : Melvin Thomas is a 64-year-old man admitted to the hospital with a diagnosis of acute CVA. Listed below are data collected by the examiner

What is meant by the internal processes of a team : What is meant by the "internal processes" of a team? Why is it important to manage both the internal processes and external opportunities of a team.

How can company assess the risk tolerance of each client : How can a company assess the risk tolerance of each client and adjust the portfolio to meet the needs of the individual investor?

User Account

All Pages