Question

Question 32: 5pts You would like to evaluate a company's level of profitability. Which of the following metrics is most appropriate to use? a) Return on Sales (ROS) b) Days of Inventory (DOI) c) Quick Ratio Question 33: 5pts You are evaluating a company's financials and notice from the Balance Sheet that it has a large amount of Long Term Liabilities (debt). You'd like to evaluate the company's ability to pay off this debt quickly. What metric is best to use? a) Debt Ratio b) Total Asset Turnover c) Debt to EBITDA Question 34: 5pts Days Sales Outstanding (DSO) is a measure of; a) The amount of new orders received by a company, but not yet shipped b) The amount of sales mead on credit by the company that haven't yet been collected c) The average revenue per day a company has in a year Question 35: 5pts You are the owner of a retail shoe store. Last year you had total sales of $1.5M with a GPM% of 40%. During the year the average value of the store's inventory was $300,000 How many days of inventory did you have on hand through the year? a) 120 b) 72 c) 180 Question 36: 5pts The Ajax Company reported earnings for its last year equal to $1 per share. Subsequently the board of directors declared a dividend payout consistent with the company's past practice, using a Dividend Payout Ratio of 25% The company stock currently sells at a P/E ratio of 20. What is the Dividend Yield Ratio (in percent)? a) 1% b) 1.25% c) 5%

Answer 1