What is the relationship between Return On Investment and Current Ratio ? What is the relationship between Return On In...
What is the relationship between Return On Investment
and Current Ratio ?
What is the relationship between Return On Investment and Operating
margin ?
--
Return on Investment (ROI) is a Dependent Variable
Current Ratio and Operating margin are Independent
Variables
Homework Answers
A higher current ratio means that a higher amount of the firm's resources are locked up in working capital. This decreases the ROI because the investment in assets is higher. Therefore, higher the current ratio, lower the ROI and lower the current ratio, higher the ROI.
A higher operating margin means higher earnings. This results in a higher ROI because the earnings are higher. Therefore, higher the operating margin, higher the ROI and lower the operating margin, lower the ROI.
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What is the relationship between Return On Investment and Current Ratio ? What is the relationship between Return On In...
When the effect of a control variable is examined: a. the relationship between the independent and...
When the effect of a control variable is examined: a. the relationship between the independent and dependent variables may be stronger. b. the relationship between the independent and dependent variables may be weaker. c. the relationship between the independent and dependent variables may be unchanged. d. all of the above
Mastery Problem: Return on Investment, margin, and turnover Return on Investment (ROI) The manager of an...
Mastery Problem: Return on Investment, margin, and turnover Return on Investment (ROI) The manager of an investment center should be evaluated based on revenues, costs, and investments. An evaluation based on net income ignores the amount of investment the investment center required. One way to measure operating profit in relation to investment is a calculation called the return on investment. One formula for calculating return on investment is: Operating income Invested Assets ROI is effective because it takes into consideration...
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1.The Breusch-Pagan test for heteroskedasticity A. tests for a relationship between the estimated residuals and the...
1.The Breusch-Pagan test for heteroskedasticity A. tests for a relationship between the estimated residuals and the independent variables B. tests for a relationship between the squared estimated residuals and the independent variables C. tests for a relationship between the estimated residuals and the dependent variable D. tests for a relationship between the squared estimated residuals and the dependent variable 2. In the presence of heteroskedasticity hypothesis testing is unreliable (T/F) 3. Plotting the residuals (predicted errors) against the independent variables...
Current Attempt in Progress The South Division of Wiig Company reported the following data for the...
Current Attempt in Progress The South Division of Wiig Company reported the following data for the current year. Sales Variable costs $3,050,000 2.013,000 610,000 5,000,000 Controllable fixed costs Average operating assets Top management is unhappy with the investment center's return on investment (ROI). It asks the manager of the South Division to submit plans to improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of action 1. Increase sales by $300,000...
2, It is known that the quantitative relationship between the dependent variable Y and the independent...
2, It is known that the quantitative relationship between the dependent variable Y and the independent variables X and 2 is: A. Make a Table and draw the graph of the relationship between Y and X when the numerical value of Z is: B. Make a Table and draw the graph of the relationship between Y and Z when the numerical value of X is: C. Make a Table of the value of the rate of change of Y with...
2, It is known that the quantitative relationship between the dependent variable Y and the independent...
2, It is known that the quantitative relationship between the dependent variable Y and the independent variables X and 2 is: A. Make a Table and draw the graph of the relationship between Y and X when the numerical value of Z is: B. Make a Table and draw the graph of the relationship between Y and Z when the numerical value of X is: C. Make a Table of the value of the rate of change of Y with...
The South Division of Wiig Company reported the following data for the current year. Sales Variable...
The South Division of Wiig Company reported the following data for the current year. Sales Variable costs Controllable fixed costs Average operating assets $2,900,000 1,914,000 600,000 5,000,000 Top management is unhappy with the investment center's return on investment (ROI). It asks the manager of the South Division to submit plans to improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of action. 1. Increase sales by $300,000 with no change in...
The South Division of Wiig Company reported the following data for the current year. Sales $2,950,000...
The South Division of Wiig Company reported the following data for the current year. Sales $2,950,000 Variable costs 1,976,500 Controllable fixed costs 605,000 Average operating assets 5,000,000 Top management is unhappy with the investment center's return on investment (ROI). It asks the manager of the South Division to submit plans to improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of action. Increase sales by $300,000 with no change in the...
Exercise 23-17 The South Division of Wiig Company reported the following data for the current year....
Exercise 23-17 The South Division of Wiig Company reported the following data for the current year. Sales Variable costs Controllable fixed costs Average operating assets $3,050,000 1,982,500 600,000 5,000,000 Top management is unhappy with the investment center's return on investment (ROI). It asks the manager of the South Division to submit plans to improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of action. 1. Increase sales by $300,000 with no...
Current Attempt in Progress The South Division of Wiig Company reported the following data for the current year. Sales Variable costs $3,050,000 2.013,000 610,000 5,000,000 Controllable fixed costs Average operating assets Top management is unhappy with the investment center's return on investment (ROI). It asks the manager of the South Division to submit plans to improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of action 1. Increase sales by $300,000...
2, It is known that the quantitative relationship between the dependent variable Y and the independent variables X and 2 is: A. Make a Table and draw the graph of the relationship between Y and X when the numerical value of Z is: B. Make a Table and draw the graph of the relationship between Y and Z when the numerical value of X is: C. Make a Table of the value of the rate of change of Y with...
2, It is known that the quantitative relationship between the dependent variable Y and the independent variables X and 2 is: A. Make a Table and draw the graph of the relationship between Y and X when the numerical value of Z is: B. Make a Table and draw the graph of the relationship between Y and Z when the numerical value of X is: C. Make a Table of the value of the rate of change of Y with...
The South Division of Wiig Company reported the following data for the current year. Sales Variable costs Controllable fixed costs Average operating assets $2,900,000 1,914,000 600,000 5,000,000 Top management is unhappy with the investment center's return on investment (ROI). It asks the manager of the South Division to submit plans to improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of action. 1. Increase sales by $300,000 with no change in...
The South Division of Wiig Company reported the following data for the current year. Sales $2,950,000 Variable costs 1,976,500 Controllable fixed costs 605,000 Average operating assets 5,000,000 Top management is unhappy with the investment center's return on investment (ROI). It asks the manager of the South Division to submit plans to improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of action. Increase sales by $300,000 with no change in the...
Exercise 23-17 The South Division of Wiig Company reported the following data for the current year. Sales Variable costs Controllable fixed costs Average operating assets $3,050,000 1,982,500 600,000 5,000,000 Top management is unhappy with the investment center's return on investment (ROI). It asks the manager of the South Division to submit plans to improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of action. 1. Increase sales by $300,000 with no...
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