Which of the Following Statements Is Generally Not True from an Investor's

question 30

Multiple Choice

Which of the following statements is generally not true from an investor's perspective?

• A)A 1:1 current ratio is generally preferred over a 1.5:1 current ratio.
• B)A 20-day average collection period for accounts receivable is generally preferred over a 30-day average collection period.
• C)A 5% dividend yield is generally preferred over a 3% dividend yield.
• D)A 10% net margin is generally preferred over an 8% net margin.

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Definitions:

Statistical Validation

The process of evaluating the correctness and reliability of a statistical model or measurement through rigorous testing and analysis.

Critical Thinking

The goal of critically examining and assessing a matter to come to a decision.

Unconditional Positive Regard

An attitude of total acceptance and support towards another person, irrespective of what they say or do.

Client-Centered Therapy

Client-centered therapy, developed by Carl Rogers, is a form of psychotherapy that emphasizes the importance of the patient's self-perception and encourages them to lead the therapy process.