Which of the following statements is most correct?
A) The cheapest form of capital is equity
B) Companies with the highest current ratios have the most liquidity
C) The best indicator of short term financing needs is the cash flow adequacy ratio
D) A faster growing company is more likely to need external financing than a slower growing company

Question

Quizplus · Accepted Answer

Faster growing companies often require more capital to support their growth, leading to a higher likelihood of needing external financing.

Which of the Following Statements Is Most Correct