When a Country Imports More Than It Exports, the Currency

question 27

True/False

When a country imports more than it exports, the currency might be expected to weaken.

Analyze a company's operating performance through net operating income, net income, and earnings per share calculations.

Calculate and understand dividend ratios, including dividend yield and dividend payout ratios, to evaluate a company's dividend policy.

Determine a company's working capital to assess its short-term financial health.

Calculate and interpret the acid-test (quick) ratio to evaluate a company's immediate liquidity without relying on inventory.

---

Definitions:

Eligible Dividends

Dividends that are designated by a corporation to be eligible for a lower tax rate for the receiver, depending on jurisdiction.

Average Tax Rate

The percentage of total income that goes to taxes, calculated by dividing the total amount of tax paid by the total income.

Taxable Income

The sum of earnings that determines the tax liability of a person or corporation to the state.

Marginal Provincial Tax Rate

The percentage of tax applied to your next dollar of income, specific to the tax brackets determined by a Canadian province.