Which of the Following Is True of Directories and Yellow

question 17

Multiple Choice

Which of the following is true of directories and Yellow Pages?

• A)They mainly serve as locators, buying guides, and mailing lists.
• B)When Yellow Pages advertising is combined with other media, the overall advertising reach decreases.
• C)Yellow Pages ads should tell people why a purchase should be made.
• D)Companies having directories which aim at particular audiences tend to secure fewer profits.
• E)Yellow Pages directories are the sole advertising medium for national businesses.

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Definitions:

EBITDA Coverage Ratio

Similar to the times-interest-earned ratio, but it recognizes that many firms lease assets and also must make sinking fund payments. It is found by adding earnings before interest, taxes, depreciation, and amortization and lease payments, then dividing this total by interest charges, lease payments, and sinking fund payments over 1 minus the tax rate.

TIE

Times Interest Earned, a financial metric indicating how well a company can meet its interest obligations based on current earnings.

DSO

Days Sales Outstanding, a measure of the average number of days that a company takes to collect payment after a sale has been made.

Repurchase

This refers to the action of buying back previously sold products or shares, often used as a way to return capital to shareholders or reduce outstanding shares.