"Inventory to Net Working Capital" Is an Example of A(n)

question 71

Multiple Choice

"Inventory to net working capital" is an example of a(n)

• A) leverage ratio.
• B) liquidity ratio.
• C) activity ratio.
• D) asset management ratio.
• E) profitability ratio.

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Definitions:

Preferred Stock

A class of ownership in a corporation with a fixed dividend that is paid out before any dividends to common stockholders.

Common Equity

The amount of money that would be returned to shareholders if all the company's assets were liquidated and all its debts repaid.

Year 0 Value

Year 0 Value is a reference point in financial analysis indicating the value of an investment or project at the beginning period before any growth or decline.

Weighted Average

Weighted average is a calculation that takes into account the varying degrees of importance of the numbers in a data set.