If the CEO of a large, diversified, firm were filling out a fitness report on a division manager (i.e., "grading" the manager) , which of the following situations would be likely to cause the manager to receive a better grade? In all cases, assume that other things are held constant.
A) The division's DSO (days' sales outstanding) is 40, whereas the average for its competitors is 30.
B) The division's basic earning power ratio is above the average of other firms in its industry.
C) The division's total assets turnover ratio is below the average for other firms in its industry.
D) The division's debt ratio is above the average for other firms in the industry.
E) The division's inventory turnover is 6, whereas the average for its competitors is 8.
Correct Answer:
Verified
Q25: Amram Company's current ratio is 1.9.Considered alone,
Q26: Which of the following statements is CORRECT?
A)
Q27: If a bank loan officer were considering
Q28: Which of the following would, generally, indicate
Q29: Which of the following statements is CORRECT?
A)
Q31: Suppose a firm wants to maintain a
Q32: A firm wants to strengthen its financial
Q33: One problem with ratio analysis is that
Q34: The Cavendish Company recently issued new common
Q35: Which of the following would indicate an
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents