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Author Question: An inventory turnover ratio of 7.2 compared to an industry average of 5.1 is likely to indicate that ... (Read 73 times)

JGIBBSON

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An inventory turnover ratio of 7.2 compared to an industry average of 5.1 is likely to indicate that
 
  A) the firm is selling a product mix that includes more high margin items.
  B) the firm has higher sales than the industry average.
  C) the firm's products are in inventory for fewer days before they are sold than is average for the
  industry.
  D) the firm is managing its inventory inefficiently.

Question 2

You are considering an investment in a AAA-rated U.S. corporate bond but you are not sure what
  rate of interest it should pay.
 
  Assume that the real risk-free rate of interest is 1.0; inflation is
  expected to be 1.5; the maturity risk premium is 2.5; and, the default risk premium for AAA
  rated corporate bonds is 3.5. What rate of interest should the U.S. corporate bond pay?
  A) 5.0 B) 8.5 C) 2.5 D) 6.0


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Juro

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JGIBBSON

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Reply 2 on: Jul 11, 2018
YES! Correct, THANKS for helping me on my review


bimper21

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Reply 3 on: Yesterday
Gracias!

 

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