The current balance sheet of Handyman Inc reports total assets of $20 million, total liabilities of $2 million, and owners' equity of $18 million. Handyman Inc is considering several financing possibilities in order to expand operations. What is the additional amount that Handyman Inc can borrow and not exceed a debt to equity ratio of 0.3?
a. $5.4 million
b. $3.4 million
c. $5.5 million
d. $4.0 million
b
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The fact that many organizations share many similar problems means that in sourcing a DSS, it is often wiser to acquire a(n)
A) ready-made DSS. B) custom-made DSS. C) offshored DSS. D) consultant-developed DSS.
Credit policy requires establishing
A. the optimal level of inventory. B. the terms of enforcement. C. the minimum level of inventory. D. the average collection period.
A firm wants to strengthen its financial position. Which of the following actions would increase its current ratio?
A. Use cash to increase inventory holdings. B. Reduce the company's days' sales outstanding to the industry average and use the resulting cash savings to purchase plant and equipment. C. Use cash to repurchase some of the company's own stock. D. Borrow using short-term debt and use the proceeds to repay debt that has a maturity of more than one year. E. Issue new stock and then use some of the proceeds to purchase additional inventory and hold the remainder as cash.
A shift to a more trusting buyer-supplier relationship is easy
a. True b. False Indicate whether the statement is true or false