For Discount Retailers Such as Walmart,inventory Turnover Equals

question 135

Multiple Choice

For discount retailers such as Walmart,inventory turnover equals:

• A)sales divided by average inventory.
• B)cost of goods sold divided by average inventory.
• C)sales discounts divided by average receivables.
• D)sales divided by average receivables.

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Definitions:

Risk-Free Rate

The anticipated financial gain from an investment devoid of any risk, frequently indicated by the yields of government bonds.

After-Tax Cost of Debt

The net cost of debt after accounting for the tax deductions available on interest payments.

Coupon

The interest rate on a bond that the issuer promises to pay to the holder until maturity, usually expressed as an annual percentage.

Tax Rate

The proportion of income, profits, or other bases that is paid or levied as tax by the government, typically expressed as a percentage.