Solved

Which of the Following Statements Is Generally Incorrect from an Investor's

Question 38

Multiple Choice

Which of the following statements is generally incorrect from an investor's perspective?


A) A 1:1 current ratio is generally preferred over a 1.5:1 current ratio.
B) A 20-day average collection period for accounts receivable is generally preferred over a 30-day average collection period.
C) A 5% dividend yield is generally preferred over a 3% dividend yield.
D) A 10% net margin is generally preferred over an 8% net margin.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions