Traditionally, when a business is valued, it is appraised primarily on its ability to generate future cash flows, with the subsequent present value of them determining worth to investors. However, on its own in the real world, such exercises do not paint an accurate picture of the business’ ...
All else equal, the more marketable an asset, the higher the price an investor will be willing to pay for the asset. The lack of marketability of an asset is costly to investors because it potentially causes the investor to miss opportunities to allocate capital to alternative uses, such as...
Answer and Explanation:1 The correct option is(b) liquidity. Short term creditors basically interested in the liquidity position of an organization because they want to...