A CFO Is Looking at How Much of a Company's

question 32

Multiple Choice

A CFO is looking at how much of a company's resources are spent on computing.He samples companies in the pharmaceutical industry and developed the following stem-and-leaf graph. What is the approximate shape of the distribution of the data?

• A)Normal
• B)Skewed to the right
• C)Skewed to the left
• D)Bimodal
• E)Uniform

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Definitions:

Interest

The cost of borrowing money, often expressed as a percentage rate over a period of time, or the income earned from lending money.

Dividends

Money disbursed by a business to its members, principally originating from the enterprise's earnings.

Financial Intermediary

An institution that pools investors’ money and invests it on their behalf giving the investors shares of itself. Mutual funds are the primary example.

Indirect Method

A way of calculating cash flows from operations by starting with net income and adjusting for changes in non-cash accounts.