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 […]
The accounting rate of return on stockholders investments ismeasured by:A. return on assets.B. return on equity.C. realized rate of inflation.D. operating income return on investment.
Which of the following financial ratios is the best measure ofthe operating effectiveness of a firms management?A. Current ratioB. Gross profit marginC. Quick ratioD. Return on […]
Which of the following is NOT a principle of basic financialmanagement?A. Efficient capital marketsB. Risk/return tradeoffC. Incremental cash flow countsD. Profit is king
How could you compensate an investor for taking on a significantamount ofrisk?A a. Increase the expected rate ofreturn.b. Raise more debt capital.c. Offer stock at a […]
If one security has a greater risk than another security howwill investorsrespond? a. They will require a lower rate of returnfor the investment that has greater […]