Quiz 8: Assessing firm performance
A firm has 30 million shares outstanding, and each share is traded at $100. Also, each shareholder gets a dividend of $2000 annually. In this case, the market capitalization is _____.
$3 billion, that is, 30 million shares × $100
Which of the following competitively important attributes is typically excluded from a firm's balance sheet?
Customer experience
_____ is best described as the difference between a buyer's willingness to pay for a product or service and a firm's total cost to produce it.
Economic value created
Which of the following best expresses fixed asset turnover?
Revenue/Fixed assets
Which of the following is an external performance metric?
Total return to shareholders
_____, which is the return on risk capital, includes stock price appreciation plus dividends received over a specific period.
Total return to shareholders
_____ denotes the dollar amount a consumer would attach to a good or service.
Value
Which of the following is NOT an accurate expression of the economic value created per unit of a product sold?
The difference between the price charged and the firm's cost
Unlike financial ratios based on accounting data, total return to shareholders is:
an external performance metric.
Economic value creation is best expressed as _____.
consumer surplus plus firm profit