1(a). A current ratio of 0.4 means: a. the firm is not doing well compared to the industry b. the firm has $0.40 of current liabilities for every $1.00 of current assets c. the firm has $0.40 of current assets for every $1.00 of current liabilities d. the firm has $0.40 of fixed assets for every $1.00 of current assets e. the firm has a debt ratio of 40%
1(b). A type of IPOs in which the investment bank assume full responsibility for any unsold shares is called a(n)_____________ a. initial public b. underwriting (firm commitment). c. rights d. private placement e. best efforts basis
1(c). The term market efficiency refers to: a. the ease, speed, and cost of trading securities. b. information is distributed quickly among the market participants. c. none of the answers is correct. d. all of the answers are correct. e. trading securities easily, quickly, and at low cost.