Answer:
5.84
Explanation:
The formula for inventory turnover is
= Cost of goods sold / Inventory
However, we need to calculate first sales, using PDP equation, which is given as;
PDP = Receivables / [ Cost of goods sold / 365 ],
Alternatively,
Cost of goods sold =
365 [Payables] / DSO
Where ;
Payable = $100m
DSO = 50 days
Inventory = $125m
= (365 * $100) / 50
= $730m
Recall inventory turnover = Cost of goods sold / Inventory
= $730m / $125m
= 5.84
Answer: D. Car
Explanation:
The full options for this question includes a fourth option which is option D for Car.
Should this be the case then a car would present the largest income effect if there was a price change.
Goods that are more expensive will present larger income effects because a price change would affect their prices more and make them even more expensive which means that they would be taking more from income and in so doing causing a larger income effect.
(if there is no fourth option for car, use tablet computer instead).
Answer:
The correct answer of the given question is B) an abnormal return
Explanation:
Abnormal return which is also termed as excess return or alpha return , is the rate of return which we get from the portfolio ( portfolio's return ), which is not explained by the rate of return of market. This abnormal return can be positive or negative, and that depends on what the actual return would be in relation to the normal return. So we can say that the abnormal return can be calculated as -
Actual return - Normal return
Answer:E) getting a loan or selling corporate bonds