FUND. OF CORPORATE FIN. 18MNTH ACCESS
15th Edition
ISBN: 9781259811913
Author: Ross
Publisher: MCG CUSTOM
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Chapter 3, Problem 8CRCT
Summary Introduction
To think critically about: The intent of book-to-bill ratio and the reason for watching it closely.
Introduction:
The book-to-bill ratio is the ratio of fresh order to sales that are completed in the semiconductor firm, which is considered as an economic sign for the total trends on the technology side.
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Required 1:
Compute the company’s return on investment (ROI) for the period using the ROI formula stated in terms of margin and turnover. (Round your intermediate calculations and final answer to 2 decimal places.)
Margin
not attempted
%
Turnover
not attempted
ROI
not attempted
%
Required 2:
Using Lean Production, the company is able to reduce the average level of inventory by $96,000. (The released funds are used to pay off short-term creditors.) (Round your intermediate calculations and final answers to 2 decimal places.)
Effect
Margin
%
Turnover
ROI
%
Required 3:
The company achieves a cost savings of $14,000 per year by using less costly materials. (Round your intermediate calculations and final answers to 2 decimal places.)
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Question 9:
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Chapter 3 Solutions
FUND. OF CORPORATE FIN. 18MNTH ACCESS
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