Firm PM has total assets of $600,000, long term debt of $250,000, total equity of $250,000, fixed
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Question:
- Firm PM has total assets of $600,000, long term debt of $250,000, total equity of $250,000, fixed assets of $450,000, and sales of $700,000. The profit margin is 5 percent.
What is the current ratio?
Do you think the firm's short-term solvency good or bad?
What is the debt-equity ratio?
Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
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