If a Firm Has a Cash Cycle of 32 Days

question 28

Multiple Choice

If a firm has a cash cycle of 32 days and an operating cycle of 67 days, what is its payables turnover?

• A) 5.45
• B) 10.43
• C) 11.41
• D) 35

---

Definitions:

Historical Performance

Refers to the past financial results and operations of a company or investment, used to predict future performance.

Efficient-Market Hypothesis

The theory that all existing information is already reflected in stock prices, thus making it impossible to consistently achieve higher returns than the overall market through stock selection or market timing.

Stock Prices

The cost or value of a share of a company's stock traded on the stock market.

Technicians

Analysts who use historical market data, charts, and statistical techniques to predict future market movements, focusing on patterns and prices.