Question
1.What is the average collection period for the year for Company XYZ Sales - $1,500 (25% cash, 75% credit); Inventory - $750; Depreciation - $1,000;
1.What is the average collection period for the year for Company XYZ
Sales - $1,500 (25% cash, 75% credit); Inventory - $750; Depreciation - $1,000; Plant & Equipment $2,000; Accounts Receivable - $250; Notes Payable - $165
2.Data regarding the stocks of two companies is given below.each stock is valued at $100 per share by investors.
a.For which company is it more logical to assume that investors value the stock for its profitability?how?
b.For which company is it more logical to assume that investors value the stock for its growth potential?How
EPSP/EPrice
CompanyA$250$100
CompanyB$254$100
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Personal Financial Planning
Authors: Lewis J. Altfest
2nd edition
1259277186, 978-1259277184
