Financial data for three firms is presented below Each differs-10995
Financial data for three firms is presented below. Each differs only with respect to philosophy on an aggressive vs. a conservative approach to current asset management.<table border='1' cellpadding='1' cellspacing='1' style='width:100%'><tbody><tr><td></td><td>FIRM A </td><td>FIRM B</td><td>FIRM C</td></tr><tr><td>Sales</td><td>$2,000,000</td><td>$2,000,000</td><td>$2,000,000</td></tr><tr><td>EBIT</td><td>$200,000</td><td>$200,000</td><td>$200,000</td></tr><tr><td>Current Assets</td><td>$600,000</td><td>$500,000</td><td>$400,000</td></tr><tr><td>Fixed Assets</td><td>$500,000</td><td>$500,000</td><td>$500,000</td></tr><tr><td>Total Assets</td><td>$1,100,000</td><td>$1,000,000</td><td>$900,000</td></tr></tbody></table>The firm with the least aggressive philosophy has an asset turnover of
This multiple choice question (MCQ) is related to the book/course
vu fin622 Corporate Finance.
It can also be found in
vu fin622 Final Term - Quiz No.12.
Financial data for three firms is presented below. Each differs only with respect to philosophy on an aggressive vs. a conservative approach to current asset management.
The firm with the least aggressive philosophy has an asset turnover of
| FIRM A | FIRM B | FIRM C | |
| Sales | $2,000,000 | $2,000,000 | $2,000,000 |
| EBIT | $200,000 | $200,000 | $200,000 |
| Current Assets | $600,000 | $500,000 | $400,000 |
| Fixed Assets | $500,000 | $500,000 | $500,000 |
| Total Assets | $1,100,000 | $1,000,000 | $900,000 |
3.33-to-1.
2.22-to-1.
5.00-to-1.
1.82-to-1.
