Which of the following is not a limitation related to the usageof ratios when reviewing a firms performance?a. Many firms experience seasonality in theiroperations.b. Ratios cannot […]
Marshall Networks Inc. has a total asset turnover of 2.5 and anet profit margin of 3.5%. The firm has a return on equity of17.5%. Calculate Marshalls […]
Which of the following best describes the goal of thefirm?a. The maximization of the total marketvalue of the firms common stockb. Profit maximizationc. Risk minimizationd. None […]
Which of the following goals of the firm is equivalent to themaximization of shareholder wealth? Ca. Profit maximizationb. Risk minimizationc. Maximization of the total market valueof […]
Which of the following should be considered when assessing thefinancial impact of business decisions?a. The amount of projected earningsb. The risk-return tradeoffc. The timing of projected […]
What is incremental cash flow and how is it used in projectanalysis?Incremental cash flow represents the difference between the cashflows if a project is taken on […]
Which of the following factors enable a public corporation togrow to a greater extent and perhaps at a faster rate than apartnership or aproprietorship?a. Unlimited liability […]
The goal of the firm shouldbe:a. Maximization of profits.b. Maximization of shareholder wealth.c. Maximization of consumersatisfaction.d. Maximization of sales.
Which of the following is not a reason why financial analystsuse ratio analysis?a. Ratios help to pinpoint a firmsstrengths.b. Ratios restate accountingdata in relative terms.c. Ratios […]