Days' Sales in Inventory Is Calculated By

question 90

Multiple Choice

Days' sales in inventory is calculated by:

• A)Dividing cost of goods sold by ending inventory times 365.
• B)Dividing cost of goods sold by average merchandise inventory.
• C)Dividing average merchandise inventory by cost of goods sold.
• D)Dividing ending inventory by cost of goods sold times 365.
• E)Dividing ending inventory by cost of goods sold.

Calculate the equity beta in a given capital structure and understand its implications.

Understand and apply the Modigliani-Miller theorem with corporate taxes to find the value of the firm.

Assess the effect of personal and corporate tax rates on the value added by leverage.

Recognize the different types of leverage and their implications for a firm's financial risk.

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