Murray Is the Manager of Oh! Canada Sporting Goods

question 76

Multiple Choice

Murray is the manager of Oh! Canada Sporting Goods.He is concerned that his cash expenditures have been exceeding his cash receipts for the last six months.Oh! Canada is suffering from a(n) ______problem.

• A)accounting
• B)exchange rate
• C)undercapitalization
• D)cash flow

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Definitions:

Dividends

Profits given by a corporation to its shareholders as a distribution.

ROE

Return on Equity, a profitability ratio that measures the amount of net income returned as a percentage of shareholders' equity.

Plowback Ratio

The proportion of earnings that a company reinvests into its business rather than distributing to shareholders as dividends, indicating its growth strategy.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholder's equity, indicating how well a company uses investments to generate earnings growth.