Which of the following scenarios can increase the return on assets? Other thing equal, decrease the turnover of assets Increase the profit margin, other things equal Other things equal, increase the amount of assets used Increase the current and quick ratio

Q: How do you calculate Fixed Asset Turnover? What is the Free Cash Flow Ratio? What is the difference…

A: The answers for the questions on accounting ratios are discussed hereunder : Fixed Assets turn over…

Q: Which of the following are inversely related to increases in a firm's current assets?I. Reorder…

A: A firms current asset increases when there is substantial increase in the current asset than the…

Q: Which of the following is not an advantage of the average rate of return method? a.includes the…

A: Average rate of return is a method of calculating return on the asset

Q: The return on assets ratio is a: Group of answer choices A)Liquidity ratio. b)Solvency ratio.…

A: Return of assets calculates the amount of profit generated on the amount of assets invested.

Q: Which of the following is true about present value calculations? Other things remaining equal, the…

A: The value of any cash flow at immediate current date is called the present value(PV) which is…

Q: The higher the anticipated return on net operating assets (RNOA) relative to the anticipated growth…

A:

Q: When net profit margin is low, must be high in order to achieve on acceptable return on assets.*

A: In accounting we know that ROA = net income/total assets

Q: The payback method measures: The profitability of an investment. The net cash inflow from an…

A: Pay back period is most popular method of capital budgeting decisions and is quite simple to use and…

Q: Explain what Return on Assets (ROA) measures? Will two firms with the same EBIT have the same ROA?

A: Return on assets is a measure used by companies to analyse how effectively assets of the business…

Q: 4. Comment on the company’s ability to utilize its assets and manage its liabilities effectively…

A: Ratios: Ratios help us in effectively analyzing a company's performance for a given period. They can…

Q: How is can CAPM, Sharpe ratio, Treynor measures and Jensen’s Alpha be used to maintain positive…

A: The performance of portfolio or investment should not evaluated only using the return of portfolio…

Q: When the amount of total revenues increases, but the amount of total expenditures remains same,…

A: quick ratio = (current assets - inventory) / current liabilities

Q: Comparison Compare the general trends of current assets for both companies. Which company do you…

A: For analysing the trends we need to examine the percentage changes in each item of current and…

Q: One method for calculating enterprise value includes the present value of which of the following…

A: Enterprise value : total value of the company that shows how much will it cost to buy the firm.

Q: What is the most likely impact on return on equity of an increase in operating expense margin, all…

A: Operating expenses are required to run the business. AN increase in operating expenses reduces the…

Q: Assuming that sales and expenses will remain unchanged, an increase in the level of assets causes…

A: Return on Investment = Net profit/ Investment in Assets

Q: is the difference between the gross present value of the benefits of that action and the amount of…

A: Net present value is the difference between the present value of future cash inflows and cash…

Q: Which items comprise operating current assets? Why is itreasonable to assume that they grow…

A: Operating current assets are the short-term assets utilized to promote a business's processes

Q: What have been the possible reasons for the changes in  Return of Equity (ROEs )? •Decompose the…

A: Common equity means the amount which is held by equity shareholders in a firm. It does not include…

Q: What have been the possible reasons for the changes in ROEs ? •Decompose the (Return on Equity) ROE…

A: Return on equity depicts the efficiency of the company in using its shareholder's capital in the…

Q: 11, Dudley Bank has the following balance sheet and income statement. For Dudley Bank, calculate:…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

Q: What is the effect of changes in cash flows, investment cost and cash outflows on profitability…

A: Profitability Index is the ratio that is resulted from dividing the current worth of subsequent year…

Q: The receivables turnover ratio is a measure of: Multiple Choice O O O Asset value. Profitability.…

A: Introduction: Receivables turnover ratio The receivables turnover ratio evaluates the effectiveness…

Q: Suppose that on its historical Income Statements, a firm always split its total depreciation and…

A:

Q: The incremental operating cash flows of an investment may include the following: Group of answer…

A: Incremental cash flow is the additional operating cash flow that the company will incur or receive…

Q: Growth rate used in forecasting the sales in formula in computing the Additional Funds Needed should…

A: Answer: Growth rate used in forecasting the sales in formula in computing the Additional Funds…

Q: Which one of the following is the best indicator of long-term debt paying ability? A)Working…

A: Working capital turnover Working capital turnover is a ratio that measures how efficiently a company…

Q: Megalopolis Bank has the following balance sheet and income statement. For Megalopolis, calculate:…

A: Return on equity is a profitability indicator computed by dividing the net income's equity. ROE is…

Q: Read the requrements. Requirement 1. If SnowDelight cannot reduce its costs, what profit will it…

A: Variable cost will vary with level of output and fixed cost remain fixed. We need to deduct both…

Q: which ratio is of greater interest to the owner-manager, the rate of return on total assets or the…

A: The ratio refers to the measure that determines the relation between two numbers. In accounting, the…

Q: A measure of asset utilization is A. Sales divided by working capital b. Return on total assets c.…

A: Notes:- Formula:- Return on Assets =Net Income/Average Total Assets Concept:- The return on assets…

Q: -DO Select all of the formulas below that will correctly get you the Return on Investment. Operating…

A: Return on investment (ROI): This financial ratio evaluates how efficiently the assets are used in…

Q: .Determine the covariance between assets R and S with the following data: State Prob…

A: Information State Prob Return J Return S Boom 0.1 16 22 Recession 0.2 -7 -4 Normal 0.4 12…

Q: What are some pros and cons of holding high levels of current assets in relation to sales? Use the…

A: The DuPont equation depicts the return on equity for a firm taking into consideration the firm’s…

Q: True or false   DCF Approach Model examines the price of "similar" assets in relation to a common…

A: 1. DCF Approach Model examines the price of "similar" assets in relation to a common variable, such…

Q: If the profit margin is 0.1142, asset turnover is 0.5619 and financial leverage is 1.2937, what is…

A: RETURN ON ASSET (ROA) :  = NET PROFIT MARGIN X ASSET TURNOVER RATIO    1. NET PROFIT MARGIN = 0.1142…

Q: In the DuPont system, the return on total assets (asset) is equal to  (return on equity) ×…

A: The return on total assets formula is provided below: Return on Total Assets = Net Profit / Total…

Q: economic value added. EVA will be positive whenever ROC is positive and greater than the cost of…

A: Meaning of Economic Value Added  EVA is the incremental difference in the rate of capital…

Q: Why does an increase in the ratio of current assets to total assets decrease both profits and risk…

A: Current assets and current liabilities are utilized to decide the liquidity of an organization. At…

Q: If the profit margin is 0.2158, asset turnover is 0.5389 and financial leverage is 1.2047, what is…

A: Return on Assets : This percentage shows how much profit we have made by investing in how many…

Q: Which of the following statements true? I. All else equal, an increase in storage costs, decreases…

A: Storage cost is the cost of physically storing the assets by the treasuries, generally applicable in…

Q: Which of the following scenarios can increase the return on assets? a. Increase the current and…

A: Return on Assets = Net Profits / Total Assets

Q: ch is easier to calculate

A: FCFE is the amount of cash a business generates that is available to be potentially distributed to…

Q: In a DuPont analysis, what are the components of return on assets?a. Net Profit Margin Ratio and…

A: Formula of Return on assets in Du Pont analysis is as follows:Return on assets=Net profit…

Q: In the most general sense, which of the following would you expect to be true? Select one: a. If a…

A: a. If current asset account and current  liability account both increases by the same amount there…

Q: All else being equal, a company would choose to invest in a capital asset if which of the following…

A: Answer: If the expected accounting rate of return is greater than the required rate of return.

Q: Assuming no changes in other variables, which of the following would decrease ROA? C . An increase…

A: ROA=NET INCOMEAVERAGE ASSET AVERAGE ASSET IS INVERSELY PROPORTIONAL TO ROA.

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.