So given your knowledge of the component ratios used in the DuPont equation, which of the following strategies should improve the company's ROE? Check all that apply. A. Increase the interest rate on its notes payable or long-term debt obligations because it will reduce the company's net profit margin. B. Reduce the company's operating expenses, its cost of goods sold, and/or the interest rate on its borrowed funds because this will increase the company's net profit margin. C. Increase the firm's bottom-line profitability for the same volume of sales, which will increase the company's net profit margin. D. Use more debt financing in its capital structure and increase the equity multiplier.

Which of the following would increase risk?   a. Raise the level of working capital b. Increase the amount of equity financing c. Increase the amount of short term borrowing d. Decrease the amount of inventory by formulating an effective inventory policy

Which of the following statements is not correct? Group of answer choices A)Purchasing fixed assets using cash decreases the current ratio. B)Accruing a commission expense will affect the net profit margin ratio. C)Increasing the financial leverage ratio guarantees the net profit margin ratio will increase. D)Purchasing treasury stock results in a decrease in the current ratio. E)All of the above are correct

Which of the following actions should Reece Windows take if it wants to reduce its cash conversion cycle?   a. Take steps to reduce the DSO.     b. Sell an issue of long-term bonds and use the proceeds to buy back some of its common stock.     c. Increase average inventory without increasing sales.     d. Sell common stock to retire long-term bonds.     e. Start paying its bills sooner, which would reduce the average accounts payable but not affect sales.

When considering the discount rate to use for discounting cash flows of an entire company, we can use either the overall WACC or just the cost of one security (e.g., debt). True or False?

If we hold all other factors the same, an increase in interest rates will: a. Decrease the present value of a stream of constant payments we expect to receive. b. Increase the present value of a stream of constant payments we expect to receive. c. Decrease the interest revenue that a company will earn on its funds that it holds in its interest-bearing checking account. d. No impact on how much a company should be willing to pay for factory equipment that is expected to significantly reduce the factory electricity costs.

What is the definition of “opportunity cost” as it relates to the time value of money? It is the loss of a potential gain choosing one alternative over another, particularly ignoring the time value of money. It is the benefit side of the cost/benefit ratio. It is the price of selling an asset. It is the amount of money invested in saving bonds. exoplain your answer give correct answer

Which of the following is an advantage of the average accounting return (AAR)? Multiple choice question. It is based on cash flows and market value. It accounts for the time value of money. Its input data are easily available. It uses an arbitrary benchmark cutoff rate.

Which of the following methods can NOT be used to improve the firm’s cash conversion cycle?     Decrease the firm’s inventory conversion cycle.     Decrease the firm’s receivables collection period.     Decrease the firm’s payables deferral period.     Increase the firm’s payables deferral period.

Which one of the following is minimized when the value of the firm is maximized? A- WACC B- Return on equity C-Debt D-Taxes E- Bankruptcy costs