What is near term impact of transaction on given ratios

Assignment Help Financial Management

Reference no: EM131339985

If a company sells additional common stock and uses the proceeds to increase its inventory level and to increase its cash balances, what is the near-term (immediate) impact (increase, decrease, no change) of this transaction on the following ratios?

a. Current ratio

b. Return on stockholders' equity

c. Quick ratio

d. Debt to total assets

e. Total asset turnover

Reference no: EM131339985

Questions Cloud

Explain the three ways to view the world sociologically : Define and explain the three ways to view the world "sociologically."Identify which sociological perspective (structural functionalism, conflict theory, symbolic interactionism) most closely represents your view of the world.

Perform a trend analysis of the return on investment : Given the following data for Profiteers, Inc., and the corresponding industry averages, perform a trend analysis of the return on investment and the return on stockholders' equity.

What are your specialties or areas of clinical focus : In what setting do you practice? How long have you been practicing?What are your specialties or areas of clinical focus?What are the most common disorders you treat?Do you have any special certifications or training beyond your original graduate cour..

Analysis of organisation internal and external environments : MNG00114 Competitive Strategy Assessment: Business Strategy Report. Thus, for this assessment you are required to choose one of two prescribed case study organisations and conduct an analysis of that organisation's internal and external environment..

What is near term impact of transaction on given ratios : If a company sells additional common stock and uses the proceeds to increase its inventory level and to increase its cash balances, what is the near-term impact of the transaction on the given ratios?

Securities is most liquid and has the least default risk : A money market security with a face value of $10,000 sells at a discount of $48. If the security matures in 30 days, what is the discount rate? Which of the following securities is most liquid and has the least default risk?

What is the final temperature of the water in the two bucket : If you just mixed the two buckets of water together instead of using the heat engine, what would be the final temperature of the water?

Calculate keystones return on stockholders equity : Calculate Keystone's return on stockholder's equity.- What does a comparison of Keystone to these averages indicate about the firm's strengths and weaknesses?

Question regarding the annuity payment : Jeremy is saving money to open an indoor skate board park. He needs $10,000 in three years to purchase equipment and initiate a building lease. He's investing his savings in an annuity yielding an annual interest rate of 6.5% compounded monthly.

User Account

All Pages