Your Consulting Firm Was Recently Hired to Improve the Performance

question 115

Multiple Choice

Your consulting firm was recently hired to improve the performance of Shin-Soenen Inc,which is highly profitable but has been experiencing cash shortages due to its high growth rate.As one part of your analysis,you want to determine the firm's cash conversion cycle.Using the following information and a 365-day year,what is the firm's present cash conversion cycle? ​

• A) 128.4 days
• B) 121.5 days
• C) 87.1 days
• D) 114.6 days
• E) 88.2 days

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Definitions:

Dividend Yield

A profitability ratio that measures the rate of return to common stockholders from cash dividends, computed by dividing the dividends per share of common stock by the market price per share of common stock.

Dividends Per Share

The amount of dividend a company pays out to its shareholders for each share owned.

Par Value

A dollar amount assigned to each share of stock.

Clean Audit Opinion

An auditor's statement that a company's financial statements are accurate, fair, and in accordance with accounting standards.