Asset Management Ratios Rachets R Us Corp

question 89

Multiple Choice

Asset Management Ratios Rachets R Us Corp.reported sales for 2013 of $200,000.Rachets R Us listed $25,000 of inventory on its balance sheet.Using a 365-day year,how many days did Rachets R Us's inventory stay on the premises? How many times per year did Rachets R Us's inventory turnover?

• A)0.125 days, 8 times, respectively
• B)0.125 days, 5 times, respectively
• C)45.625 days, 8 times, respectively
• D)45.625 days, 5 times respectively

Understand the role of education and research in supporting entrepreneurship.

Understand the concepts and limitations of the dividend growth model in determining a firm's cost of equity.

Appreciate the impact of the market risk premium on the cost of equity.

Recognize the influence of a firm's beta on investment decisions through project examples.

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Definitions:

Yield

The income return on an investment, such as the interest or dividends received, expressed as an annual percentage.

Coupon Rate

Interest rate on a bond paid each year, represented as a percentage of its face value.

Yield

The income return on an investment, such as the interest or dividends received, expressed as an annual percentage of the investment's cost.

Annual Coupon Bonds

Bonds that pay interest to the holder on an annual basis, where the interest rate is specified as a percentage of the bond's face value.