On June 10,2012 Thetford Builders,Inc

question 9

Multiple Choice

On June 10,2012 Thetford Builders,Inc.,a publicly traded company,announced that it had been awarded a contract to build a football stadium at a contract price of $500 million.This contract would increase its projected revenues by 25% over the next three years.Which of the following statements is correct in regards to this announcement?

• A) The market price of Thetford's stock will probably be higher on June 11,2012 than on June 10.
• B) Thetford's net cash flow from operations will increase by 25% over the next three years.
• C) Thetford's total assets should be increased by $500 million on June 10,2012 to recognize this contract.
• D) Thetford's net income will increase by 25% over the next three years.

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Definitions:

Central Tendency

A statistical measure that identifies a single value as representative of the middle of a dataset, often the mean, median, or mode.

Bimodal Distributions

Probability distributions with two different modes or peaks, reflecting two dominant values in a dataset.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data, aiming to define the center of the data set with measures such as mean, median, and mode.

Outliers

Observations in data that are significantly different from the majority of the data points, potentially indicating a measurement error or a novel finding.