Question

QUESTION 7: The retention ratio and the payout ratio are both irrelevant for publicly traded companies...

QUESTION 7: The retention ratio and the payout ratio

are both irrelevant for publicly traded companies

must equal 1 (100%) when added together

determine the total asset turnover

are based on the liquidity of the firm

QUESTION 8: Which of these is purely a performance ratio?

cash ratio

quick ratio

current ratio

total asset turnover

0 0
Add a comment Improve this question Transcribed image text
Answer #1

1. Option (b) is correct

The retention ratio and the payout ratio must equal (100%) when added together. Retention ratio indicates the percentage of profits retained in the business while payout ratio indicates the percentage of profits paid as dividends.

2. Option (d) is correct

Total asset turnover ratio is a performance ratio. It indicates how effectively the assets are being utilized to generate sales.

Add a comment
Know the answer?
Add Answer to:
QUESTION 7: The retention ratio and the payout ratio are both irrelevant for publicly traded companies...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Pick two publicly traded companies in the same industry. Apple Inc. and Microsoft 2. Calculate the...

    Pick two publicly traded companies in the same industry. Apple Inc. and Microsoft 2. Calculate the ratios for 2015 and 2016 that you deem necessary for each company for two years. Some examples are working capital, current ratio, current cash debt coverage ratio, inventory turnover ratio, days in inventory, receivables turnover ratio, average collection period, debt to asset ratio, cash debt coverage ratio, times interest earned ratio, free cash flow, earnings per share, price earnings ratio, gross profit rate, profit...

  • 1. Pick two publicly traded companies in the same industry. 2. Calculate the ratios from your...

    1. Pick two publicly traded companies in the same industry. 2. Calculate the ratios from your textbook or any other ratios you deem necessary for each company for two years. Some examples are working capital, current ratio, current cash debt coverage ratio, inventory turnover ratio, days in inventory, receivables turnover ratio, average collection period, debt to asset ratio, cash debt coverage ratio, times interest earned ratio, free cash flow, earnings per share, price earnings ratio, gross profit rate, profit margin...

  • find Earnings Per Share and Price/Earnings ratio information for two competing publicly traded companies. State what...

    find Earnings Per Share and Price/Earnings ratio information for two competing publicly traded companies. State what you have found and provide a couple of sentences of explanation as to what those ratios tell you about the firms. Finally, provide some analysis of which firm you think would be the better investment, based on this information.

  • find Earnings Per Share and Price/Earnings ratio information for two competing publicly traded companies. State what...

    find Earnings Per Share and Price/Earnings ratio information for two competing publicly traded companies. State what you have found and provide a couple of sentences of explanation as to what those ratios tell you about the firms. Finally, provide some analysis of which firm you think would be the better investment, based on this information.

  • Pick one publicly traded company and go their website and obtain the most recent annual income...

    Pick one publicly traded company and go their website and obtain the most recent annual income statement and balance sheet.  Your paper will explain these two statements in terms of what you have learned so far this semester.  Suggested topics to cover: Total Revenue, Gross Margin and Net Income Earnings per share Total Assets and total equity Percent of debt to total equity Current Ratio Inventory turnover ratio Receivables turnover ratio Days Sales Outstanding Method of Inventory costing and valuation...

  • Which of the following is not an asset management ratio? A days sales outstanding ratio A...

    Which of the following is not an asset management ratio? A days sales outstanding ratio A fixed asset turnover ratio A price-earnings ratio The average collection period Nikola Motors has a quick ratio of 2.00; $38,250 in cash; $21,250 in accounts receivable; some inventory; total current assets of $85,000; and total current liabilities of $29,750. In its most recent annual report, Nikola reported annual sales of $100,000 and a cost of goods sold equal to 65% of annual sales. How...

  • QUESTION 8 A marketing manager's performance would most likely be evaluated by which ratio below? days...

    QUESTION 8 A marketing manager's performance would most likely be evaluated by which ratio below? days sales outstanding (average collection period) cash ratio total asset turnover quick ratio

  • Company Firm 1 Profit a. Fill in the following information for the SIX NON-financial companies of...

    Company Firm 1 Profit a. Fill in the following information for the SIX NON-financial companies of your choice. Firm 2 Firm 3 Firm 4 Firm 5 Firm 6 name Current Ratio B - Ratio Asset Turnover Debt/Equity Margin Price to Earning Market to Book Closing Stock price (une 1st) a. Please explain the ratios of the firms to the potential investors of these five stocks.(Use the structure of the textbook and compare them with the industry averages, if possible) Short-term...

  • Correctly answer is part of question 3 Aa Aa 3. Asset management ratios Asset management ratios...

    Correctly answer is part of question 3 Aa Aa 3. Asset management ratios Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio,...

  • 4. Tiny plc is a stable growth, publicly traded company, expected to grow 2% a year...

    4. Tiny plc is a stable growth, publicly traded company, expected to grow 2% a year in perpetuity. It has a cost of equity of 10% and is expected to pay out a. Estimate the "intrinsic" PE ratio for the company. (2.5 marks) b. The company has 100 million shares and 10 million management options outstanding; the options have a value of £5 per option. If the firm is expected to earn £50 million in net income next year, estimate...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT