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- QUESTION 8 Which of the following breakeven points requires the minimum quantity of production? gross profit breakeven Cash Flow breakeven net present value breakeven Accounting breakevenQUESTION 9 The Net Present Value method always uses the weighted average cost of capital as the present value interest rate (discount rate). True False QUESTION 10 To decrease the overall risk of a firm, products, investment should be made that have positive correlation to each other. True False QUESTION 11 The Break Even formula calculates a Break Even production, and sale, point at Operating Income level on the Income Statement True FalseQUESTION 8 In the Romer model, output increases in the and decreases in the OA research share; growth rate of knowledge OB.saving rate; growth rate of knowledge OC. growth rate of knowledge; depreciation rate OD.saving rate; depreciation rate O E. growth rate of knowledge; fraction of population in the ideas sector W G K AE M. Al Control
- QUESTION 11 As sales increase, a firm needs to proportionately to support the O A. increase the level of fixed assets; increase the level of inventory B. increase the level of inventory; higher sales level O C. increase the level of inventory; increase the level of fixed assets O D. None of the above30 Statements:I. An internal rate of return that is greater than the cost of capital ensures that the company earns above its required return.II. This (I) results to greater value of the company and therefore the wealth of its owners. Group of answer choices Statement II is true. Both statements are true Both statements are false Statement I is trueQUESTION 44 The ratio is the best overall measure of management's performance O a. Activity ratio b. Debt-equity ratio O. Operating cash flow to current lia d. Earnings per share e. Gross Operating Profit Margin ratio (also callded Operating efficiency ratio) QUESTION 45 Financial leverage is O a. The extent to which an operation's expenses are fixed rather than variable b. The use of debt in place of equity to increase the return on equity dollars already invested O C. The use of equity in place of debt to increase the return on debt d. None of the abov QUESTION 46 When owners use financial leverage, they transfer part of their risk to O a. Creditors O b. Government agencies O C. Managers O d. None of the abov
- Question 3 of 22 Which option is an efficiency ratio? Select an answer: total asset turnover ratio debt-to-equity ratio profit margin current ratio PreviousQUESTION 44 The ratio is the best overall measure of management's performance a. Activity ratio b. Debt-equity ratio Oc. Operating cash flow to current lia d. Earnings per share O e. Gross Operating Profit Margin ratio (also callded Operating efficiency ratio) QUESTION 45 Financial leverage is O a. The extent to which an operation's expenses are fixed rather than variable O b. The use of debt in place of equity to increase the return on equity dollars already invested OC. The use of equity in place of debt to increase the return on debt O d. None of the abov QUESTION 46 When owners use financial leverage, they transfer part of their risk to O a. Creditors O b. Government agencies O C. Managers O d. None of the abovQUESTION 22 This question asks you to compare the Slutsky equations for the consumer's model with monetary income (CM) and for the consumer's model with endowments (CE). Consider the demand for good x and how this demand changes as the price of good x increases O a. In both the CM and the CE models, if x is a normal good, then the demand for good x must decrease O b. In both the CM and the CE models, if x is an inferior good, then the demand for good x must increase Oc Suppose x is a normal good. While in the CM model the demand for good x must decrease, in the CE model the demand for good x may increase if the consumer is a net seller of good x before the change in price Od. Suppose x is a normal good. While in the CM model the demand for good x must decrease, in the CE model the demand for good x may increase if the consumer is a net buyer of good x before the change in price Oe Suppose x is a normal good. While in the CM model the demand for good x must increase, in the CE model the…
- Question 15 15. If a firm's Return on Assets (ROA) is equal to its Return on Equity (ROE), then the firm's Internal Growth Rate must be equal to its Sustainable Growth Rate Stock price must be equal to its earnings per share Retention ratio must be equal to its dividend yield O Net income must be equal to its operating cash flow O depreciation tax shield must be equal to its net income Degree of operating leverage must be equal to the fixed costs.Profit maximisation is a Select one: a. Both of these b. Short term concept c. Long term concept d. None of theseFE1 Show your work for problem solving questions. If you use one or more sources of information in preparing any answer, provide an APA-style reference, identify any quoted information, and cite a reference wherever it is used. How would each of the following events change the equilibrium financial market value of a company? (a)an increase in its cost of production; (b) an increase in its cost of financing; (c) an increase in the market’s discount rate; (d) an increase in its sales revenue; and (e) an increase in its projected future profits.
