If You Are Going to Open Four Facilities and Have

question 7

Multiple Choice

If you are going to open four facilities and have identified six candidate locations, how many different combinations of site selections are there?

• A) 4
• B) 6
• C) 15
• D) 24

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Definitions:

Debt-equity Ratio

A ratio used to express the relative use of equity and debt in funding a company’s assets.

Capital Spending

Expenditures by a company on major physical goods or services that are expected to generate economic benefits in the future.

Residual Dividend Policy

A strategy where a company pays dividends out of the residual or leftover equity only after all project capital needs are met.

Dividend Payout Ratio

Amount of cash paid out to shareholders divided by net income.