A Halifax ﬁrm has an interval measure of 83. This means that the ﬁrm must:
A) Pay its creditors within the next 83 days or go bankrupt.
B) Get additional ﬁnancing within the next 83 days or possibly face closing the ﬁrm.
C) Sell all of its common stock in the next 83 days or become privately owned.
D) Pay a dividend to its shareholders every 83 days.
E) Pay interest on its debt every 83 days.

Question

Quizplus · Accepted Answer

An interval measure of 83 means that the Halifax firm has 83 days before it runs out of cash to pay its bills. This means that the firm must get additional financing within the next 83 days to ensure its survival, or it may potentially face closure or bankruptcy. This is why choice B, getting additional financing within the next 83 days or possibly facing closure, is the best option.

A Halifax ﬁRm Has an Interval Measure of 83