Quiz Ch 04 – Definition of Inventory Turnover Ratio
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
What does the inventory turnover ratio analyze in relation to inventory?
What does the inventory turnover ratio analyze in relation to inventory?
What is the best way to describe the internal growth rate of a firm in terms of achievable growth rate and financing options?
How can the sustainable growth rate of a firm be best described in terms of achievable growth rate and financing options?
What action will certainly raise a firm’s Return on Equity (ROE) when the Return on Assets (ROA) is presently 10% and the leverage ratio is 1?
Which factor will increase the internal rate of growth, assuming all else is constant?
What factor will lead to a decrease in the NWC turnover ratio, assuming all other factors remain constant?
What primarily contributes to the potential distortion in comparing the ROA of different firms when net income is employed in the numerator?
Which will NOT impact the cash coverage ratio when increased?
With BDS’s acquisition of its primary supplier, ABC, resulting in an increased profit margin but a constant ROA, which ratio is most likely to have decreased, causing the ROA NOT to rise alongside the higher profit margin?
Which action will result in an elevation of a firm’s times interest earned ratio?