Allison Robards Is the Owner of Backstreet Books, a Small

question 84

Multiple Choice

Allison Robards is the owner of Backstreet Books, a small eclectic-style bookstore in a bustling college town. Allison prides herself in selecting hard to find books and magazines that her clientele enjoy. Recently, Allison is experiencing a cash flow shortage, and she is concerned that she may be purchasing too many copies of each title. Having recently completed a business class, you suggest to Allison that she calculate the ______________ ratio for her store, and then compare it to other stores in her industry.

• A) current
• B) debt to equity
• C) return on equity
• D) inventory turnover

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Definitions:

Market Price

The market price currently for acquiring or selling a service or asset.

Dividend Income

Income received from owning shares of a company that pays dividends.

Dividend Per Share

The total dividends declared by a corporation divided by the number of outstanding shares, indicating how much each share receives in dividends.

Stock Split

A corporation's decision to divide its existing shares into multiple shares to boost the liquidity of the shares, though the market capitalization remains the same.