Days' sales in inventory is calculated as:
A. Ending inventory divided by cost of goods sold.
B. Cost of goods sold divided by ending inventory times 365.
C. Ending inventory divided by cost of goods sold times 365.
D. Cost of goods sold divided by ending inventory.
E. Ending inventory times cost of goods sold.
Answer: C
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When a portion of stockholders' original investment is returned in the form of a dividend, it is called a
a. compensating dividend. b. liquidating dividend. c. property dividend. d. equity dividend.
Which of the following is the best opening sentence for a direct response message?
A) Here are the answers to the questions you asked about our banquet facilities. B) Thank you for your e-mail message of March 25. C) We look forward to helping you with all of your banquet needs. D) Your e-mail of March 25 was forwarded to me.
A firm that is interested in consistent on-time delivery would probably design their transportation and warehousing system to include:
A) air transportation with a spot stock warehouse. B) rail transportation with a consolidation warehouse. C) water transportation with a hub and spoke warehouse. D) pipeline transportation with a postponement warehouse. c
Which of the following statements is correct?
A. One advantage of the residual dividend policy is that it leads to a stable dividend payout, which investors like. B. An increase in the stock price when a company decreases its dividend is consistent with signaling theory as postulated by MM. C. If the "clientele effect" is correct, then for a company whose earnings fluctuate, a policy of paying a constant percentage of net income will probably maximize the stock price. D. Stock repurchases make the most sense at times when a company believes its stock is undervalued. E. Firms with a lot of good investment opportunities and a relatively small amount of cash tend to have above average payout ratios.