Question
A firm has current assets of $50 million and fixed assets of $75 million. The firm's current liabilities is $25 million. The firm has a
A firm has current assets of $50 million and fixed assets of $75 million. The firm's current liabilities is $25 million. The firm has a debt ratio of 40%. The firm has sales of $500 million and net income of $60 million. If the net income changes to $65 million (all else is the same), the total asset turnover will
| increase | |
| decrease | |
| stay the same |
A firm reduces its accounts payable from 15 days to 12 days. Its main competitors have payables at 13 days. Which of the following will happen?
| dividends will increase | |
| dividends will decrease | |
| cash flows will increase | |
| cash flows will decrease |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started