Business, 03.11.2020 16:40 9Time

If two firms have the same ROA, the firm with the most debt can be expected to have the lower ROE. b. An increase in the DSO, other things held constant, could be expected to increase the ROE. c. An increase in a firm's debt ratio, with no changes in its sales or operating costs, could be expected to lower the profit margin. d. An increase in the DSO, other things held constant, could be expected to increase the total assets turnover ratio. e. The ratio of long-term debt to total capital is more likely to experience seasonal fluctuations than is either the DSO or the inventory turnover ratio

Answers: 3

Show answers

Answers

c. An increase in a firm's debt ratio, with no changes in its sales or operating costs, could be expected to lower the profit margin.

Explanation:

CHECK THE COMPLETE QUESTION BELOW;

Which of the following statements is CORRECT?

If two firms have the same ROA, the firm with the most debt can be expected to have the lower ROE. b. An increase in the DSO, other things held constant, could be expected to increase the ROE. c. An increase in a firm's debt ratio, with no changes in its sales or operating costs, could be expected to lower the profit margin. d. An increase in the DSO, other things held constant, could be expected to increase the total assets turnover ratio. e. The ratio of long-term debt to total capital is more likely to experience seasonal fluctuations than is either the DSO or the inventory turnover ratio

The correct statement here is " An increase in a firm's debt ratio, with no changes in its sales or operating costs, could be expected to lower the profit margin"

A debt ratio which is regarded as "financial ratio" it gives the ratio of total debt to total asset, it helps in evaluation of financial leverage of a company. During some period if there is no change in sales i.e if the returns of the company doesn't increase or the operating cost is reduced the " profit margin"( which measure the company profitability)will definitely reduced" as a result of the debt ratio that doesn't reduce since the proportion of the company's asset is continuously financed by debt. Hence An increase in a firm's debt ratio, with no changes in its sales or operating costs, could be expected to lower the profit margin.

Answer from: Quest

My first question is what benefits do you expect to achieve from career exploration? the benefits that i expect to achieve from career exploration. for me i think the benefits of exploring many different careers are that you get exposed to more, so it's easier for you to pick which one you like best. another benefit is that you get a more first hand view of what jobs are more likely to be needed in the future and that can be factored into your consideration. my second question is what do you expect to be the most challenging parts of your career planning process? why? the most challenging parts of my career planning process is trying to get things in order and trying to write this paragraph it is confusing and, hard work. and last but not least my third question is i think the most challenging part is taking the first step and really deciding on a career you want to pursue; there are so many options and it can be hard to choose.which jobs will allow me to make a living? ; what skills does emergency medical technician emergency medical services medical » physiology require?

Answer from: Quest

Ithink its b hope it ! : )

Another question on Business

Business, 21.06.2019 21:30

The balance sheet contains the following major sections: current assets long-term investments property, plant, and equipment intangible assets other assets current liabilities long-term liabilities contributed capital retained earnings accumulated other comprehensive income required: the following is a list of accounts. using the letters a through j, indicate in which section of the balance sheet each of the accounts would be classified. if an account does not belong under one of the sections listed, select "not under any of the choices" from the classification drop down box. for all accounts, indicate if the account is a contra account or an account that would normally be deducted on the balance sheet by selecting "yes" from the second drop down box, otherwise select "no". account classification contra or deducted (yes/no) 1. cash 2. bonds payable (due in 8 years) 3. machinery 4. deficit 5. unexpired insurance 6. franchise (net) 7. fund to retire preferred stock 8. current portion of mortgage payable 9. accumulated depreciation 10. copyrights 11. investment in held-to-maturity bonds 12. allowance for doubtful accounts 13. notes receivable (due in 3 years) 14. property taxes payable 15. deferred taxes payable 16. additional paid-in capital on preferred stock 17. premium on bonds payable (due in 8 years) 18. work in process 19. common stock, $1 par 20. land 21. treasury stock (at cost) 22. unrealized increase in value of available-for-sale securities

Answers: 3

Answer

Business, 22.06.2019 01:00

Granby foods' (gf) balance sheet shows a total of $25 million long-term debt with a coupon rate of 8.50%. the yield to maturity on this debt is 8.00%, and the debt has a total current market value of $27 million. the company has 10 million shares of stock, and the stock has a book value per share of $5.00. the current stock price is $20.00 per share, and stockholders' required rate of return, r s, is 12.25%. the company recently decided that its target capital structure should have 35% debt, with the balance being common equity. the tax rate is 40%. calculate waccs based on book, market, and target capital structures. what is the sum of these three waccs?

Answers: 3

Answer

Business, 22.06.2019 17:20

“strategy, plans, and budgets are unrelated to one another.” do you agree? explain. explain how the manager’s choice of the type of responsibility center (cost, revenue, profit, or investment) affects the behavior of other employees.

Answers: 3

Answer

Business, 22.06.2019 19:00

Question 55 ted, a supervisor for jack's pool supplies, was accused of stealing pool supplies and selling them to friends and relatives at reduced prices. given ted's earlier track record, he was not fired immediately. the authorities decided to give him an administrative leave, without pay, until the investigation was complete. in view of the given information, it would be most appropriate to say that ted was: demoted. discharged. suspended. dismissed.

Answers: 2

Answer

You know the right answer?

If two firms have the same ROA, the firm with the most debt can be expected to have the lower ROE. b...

Questions