Higher working capital usually results in:

(a) Higher current ratio, higher risk and higher profits

(b) Lower current ratio, higher risk and profits

(c) Higher equity, lower risk and lower profits

(d) Lower equity, lower risk and higher profits

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Solution

Higher working capital usually results in higher current ratio, higher risk and higher profits.

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Similar questions

Higher working capital usually results in

(a) higher current ratio, higher risk and higher profits

(b) lower current ratio, higher risk and profits

(d) lower equity, lower risk and higher profits

Higher debt-equity ratio results in:

(a) Lower financial risk

(b) Higher degree of operating risk

(d) Higher EPS

Do investors who prefer taking the risk for higher returns opt for investing in equity shares?

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