Monica Mills Co

question 121

Multiple Choice

Monica Mills Co. began the year with $100,000 in inventory and ends the year with $300,000. Purchases during the year amounted to $1,660,000. The number of days' sales in inventory for the year was

• A) 43.98 days
• B) 8.30 days
• C) 7.30 days
• D) 50.00 days

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Definitions:

Coupon Rate

The yearly interest rate yielded by a bond, shown as a percent of its nominal value.

Price Sensitive

Characteristic of information or news that could influence the price of securities if it were made public.

Zero-Coupon Bond

A type of bond that does not pay interest during its life but is sold at a discount from its face value and redeemed at par at maturity.

Immunization Strategies

Financial strategies used to shield a bond portfolio from the effects of interest rate fluctuations by balancing the duration of assets and liabilities.