FIN4060 Week 2 Discussion

 Discussion

There will be two discussion questions listed below. By the due date assigned respond to one of the discussion questions and submit your response to the Discussion Area. Use the lessons and vocabulary found in the reading. Support your answers with examples and research and cite your sources using APA format.

Discussion Question 1:

Company’s often encounter stock splits and reverse stock splits.

• Why do these splits occur?
• Explain the short-term and long-term effects of split on a company's financial statements.
• Justify your answer.

Discussion Question 2:

Inventory turnover is an important measure of how a firm is managing its current assets, but differs among firms. For example, the inventory turnover for a grocery store will be much higher than a furniture store. Why might this be the case? Justify your answer.