Which of the following is most likely to occur if a firm over-invests in net wor

Question

Which of the following is most likely to occur if a firm over-invests in net working capital? A) the quick ratio will be lower than it should be B) the current ratio will be lower than it should be C) the return on investment will be lower than it should be D) the times interest earned ratio will be lower than it should be Which of the following is most likely to occur if a firm over-invests in net working capital? A) the quick ratio will be lower than it should be B) the current ratio will be lower than it should be C) the return on investment will be lower than it should be D) the times interest earned ratio will be lower than it should be A) the quick ratio will be lower than it should be B) the current ratio will be lower than it should be C) the return on investment will be lower than it should be D) the times interest earned ratio will be lower than it should be

Explanation / Answer

C) the return on investment will be lower than it should be

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