Emphasizing current profitability at the expense of future profitability and profit growth makes an enterprise more...
Emphasizing current profitability at the expense of future profitability and profit growth makes an enterprise more attractive to shareholders (stockholders).
True
False
Homework Answers
False
Putting future growth rate at risk at the consequence of present profitablity is tkane as negative sentiment by the investors
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Emphasizing current profitability at the expense of future
profitability and profit growth makes an enterprise more...
Indicate whether each of the following statements is true or false. Questions with more than one...
Indicate whether each of the following statements is true or false. Questions with more than one answer selected will be marked as incorrect. 1.Under IFRS, contingent liabilities should be recorded in the accounts if there is a remote possibility that the contingency will actually occur. True False 2. The classification of a liability as current or non-current is important because it may affect the evaluation of a company’s liquidity. True False 3. The liability of a shareholder is usually limited...
Assume an interest rate of 5% and the future firm’s profit growth rate of 3%. Given...
Assume an interest rate of 5% and the future firm’s profit growth rate of 3%. Given that current profits are $150 million, then What's the value of the firm? What's the value of the firm after paying dividends equal to its current profits? Please show calculations.
When buying stock, you can expect to earn money through future current income (from ) and...
When buying stock, you can expect to earn money through future current income (from ) and future capital appreciation (from ). Together, your total earnings from a given investment can be expressed in terms of the approximate yield. This value makes it easier for you to compare investment options. Understanding the Approximate Yield Equation The formula for the approximate yield of an investment can look intimidating, but it's really just a function of three things: (1) average current income, (2)...
Required: 1. Compute the gross profit percentage in the current and previous years. Are the current...
Required: 1. Compute the gross profit percentage in the current and previous years. Are the current year results better, or worse, than those for the previous year? 2. Compute the net profit margin for the current and previous years. Are the current year results better, or worse, than those for the previous year? 3. Compute the earnings per share for the current and previous years. Are the current year results better, or worse, than those for the previous year? 4....
drop down 1&2- •future current income • future capital appreciation dropdown 3- • 16.90 • 14.59...
drop down 1&2-
•future current income
• future capital appreciation
dropdown 3-
• 16.90
• 14.59
• 18.24
• 6.00
dropdown 4-
• 20.34
• 18.24
• 18.32
• 17.29
page may not uncon Correctly. Click here to learn more 7. Forecasting mutual fund value Aa Aa Evaluating Mutual Fund Performance When buying a mutual fund, you might expect to earn money through (from dividends), (from increases in share price of the fund's underlying securities), or both. You can calculate...
True or False 1. Asset turnover measures a company's profitability. 2. NOPAT is equivalent to income...
True or False 1. Asset turnover measures a company's profitability. 2. NOPAT is equivalent to income from operating activities. 3. If Company A is more profitable than Company B, then Company A will have a higher RNOA than Company B. 4. Ratios provide one way to compare companies in the same industry regardless of their size. 5. Highly leveraged firms have higher ROE than lower leveraged firms. 6. All things equal, the higher a company's inventory turnover rate, the better....
TRUE OR FALSE Payroll tax expense for businesses consists of FICA tax, federal unemployment tax, and...
TRUE OR FALSE Payroll tax expense for businesses consists of FICA tax, federal unemployment tax, and state unemployment tax. A disadvantage of bond financing is that issuing bonds dilutes (reduces) owners’ equity. A bond's par value is not necessarily the same as its market value. A premium on bonds occurs when bonds carry a contract rate greater than the market rate at issuance. A corporation is a separate legal entity from its owners. In a corporation, authorized stock can be...
(Evaluating current and pro forma profitability) The annual sales for Salco Inc. were $4.55 million last...
(Evaluating current and pro forma profitability) The annual sales for Salco Inc. were $4.55 million last year. All sales are on credit. The firm's end-of-year balance sheet and income statement were in the popup window: a. Calculate Salco's total asset turnover, operating profit margin, and operating return on assets. b. Salco plans to renovate one of its plants, which will require an added investment in plant and equipment of $1.01 million. The firm will maintain its present debt ratio of...
1. True or False? The larger the firm's TIE ratio, the less times a firm can...
1. True or False? The larger the firm's TIE ratio, the less times a firm can pay its interest expenses. 2. True or False? Your firm has a debt to equity ratio of 55%, and its biggest competitor has a debt to equity ratio of 66%. Based on this information, your firm is less levered. 3. True or False? A dividend payout ratio larger than 50% indicates a firm retains more than it pays out to shareholders. 4. True or...
Return on assets equals: Profit margin × Inventory turnover. B) Gross profit ratio × Asset turnover. C) Gross profit ratio × Inventory turnover. D) Profit margin...
Return on assets equals: Profit margin × Inventory turnover. B) Gross profit ratio × Asset turnover. C) Gross profit ratio × Inventory turnover. D) Profit margin × Asset turnover. 33.If your employer declares bankruptcy, this can have a major effect on your pension if you are in a Either plan B) Defined Benefit Plan C) Neither Plan D) Defined Contribution Plan 37If you put $200 into a savings account that pays annual compound interest of 8% per year and then...
When buying stock, you can expect to earn money through future current income (from ) and future capital appreciation (from ). Together, your total earnings from a given investment can be expressed in terms of the approximate yield. This value makes it easier for you to compare investment options. Understanding the Approximate Yield Equation The formula for the approximate yield of an investment can look intimidating, but it's really just a function of three things: (1) average current income, (2)...
Required: 1. Compute the gross profit percentage in the current and previous years. Are the current year results better, or worse, than those for the previous year? 2. Compute the net profit margin for the current and previous years. Are the current year results better, or worse, than those for the previous year? 3. Compute the earnings per share for the current and previous years. Are the current year results better, or worse, than those for the previous year? 4....
drop down 1&2-
•future current income
• future capital appreciation
dropdown 3-
• 16.90
• 14.59
• 18.24
• 6.00
dropdown 4-
• 20.34
• 18.24
• 18.32
• 17.29
page may not uncon Correctly. Click here to learn more 7. Forecasting mutual fund value Aa Aa Evaluating Mutual Fund Performance When buying a mutual fund, you might expect to earn money through (from dividends), (from increases in share price of the fund's underlying securities), or both. You can calculate...
True or False 1. Asset turnover measures a company's profitability. 2. NOPAT is equivalent to income from operating activities. 3. If Company A is more profitable than Company B, then Company A will have a higher RNOA than Company B. 4. Ratios provide one way to compare companies in the same industry regardless of their size. 5. Highly leveraged firms have higher ROE than lower leveraged firms. 6. All things equal, the higher a company's inventory turnover rate, the better....
(Evaluating current and pro forma profitability) The annual sales for Salco Inc. were $4.55 million last year. All sales are on credit. The firm's end-of-year balance sheet and income statement were in the popup window: a. Calculate Salco's total asset turnover, operating profit margin, and operating return on assets. b. Salco plans to renovate one of its plants, which will require an added investment in plant and equipment of $1.01 million. The firm will maintain its present debt ratio of...
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