Richard's Sporting Goods Reports Net Income of $100,000,net Sales of $500,000,and

question 25

Multiple Choice

Richard's Sporting Goods reports net income of $100,000,net sales of $500,000,and average assets of $1,000,000.The asset turnover is:

• A)0.1 times.
• B)0.5 times.
• C)2 times.
• D)5 times.

---

Definitions:

Dividend Discount Model

A valuation method used to estimate the value of a stock by discounting predicted dividends to their present value.

Capital Gains

The profit from the sale of an asset or investment when the sale price exceeds the purchase price.

After-tax Value

The value of an investment or income after all taxes have been deducted, reflecting the net gain or loss.

Tobin's Q

A ratio comparing the market value of a company's assets to their replacement cost, often used to assess if a company is under or overvalued.