Morris’ company purchased an available-for-sale security. The security is not intended to be held for very long, and the company has plans to sell it within the next two years. The security is from a well-known publicly traded company. What can be inferred about this situation? A. The investment is readily marketable because they intend to sell it for cash within the next year. B. The investment is intended to be converted because it will be easy to sell the investment as it is from a publicly traded company. C. The investment is readily marketable because it will be easy to sell if the company needs extra cash quickly. D. The investment is intended to be converted because it is an available-for-sale security.

Morris’ company purchased an available-for-sale security. The security is not intended to be held for very long, and the company has plans to sell it within the next two years. The security is from a well-known publicly traded company. What can be inferred about this situation? A. The investment is readily marketable because they intend to sell it for cash within the next year. B. The investment is intended to be converted because it will be easy to sell the investment as it is from a publicly traded company. C. The investment is readily marketable because it will be easy to sell if the company needs extra cash quickly. D. The investment is intended to be converted because it is an available-for-sale security.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 3P

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