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Explain the important for managers to understand the importance of both the
internal growth rate and the sustainable rate of growth.
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- How do the DuPont technique helps the firm’s managers to further analyze its returns?Why is profitability analysis necessary, with a particular emphasis on return on investment? When considering your answer, consider the ROI breakdown.how to assess a company's success in using leverage to increase returns?
- Financial analysts have developed two performance measures: Market Value Added (MVA) and Economic Value Added (EVA). Discuss and explain both. Which is a better representative of the firm’s performance, and why?What value would a discussion of the profitability index add to a conversation where you are trying to communicate the benefits of a positive net present value project to a firm’s general management team? (Explain clearly and in-depth.)Why is it critical to examine profitability, with a particular emphasis on return on investment? Consider the ROI breakdown while considering your answer.
- Define the value maximization of firm goal and describe the relationship between this goal and financial decisions.Which two types of investment criteria are most frequently used by managers today? Multiple Choice O O O O Internal rate of return and net present value Net present value and profitability index Net present value and payback Internal rate of return and payback Average accounting return and internal rate of return DThe following are investment criteria: net present value, payback, profitability index, average accounting return, and the internal rate of return. Question: Which one of these is the most valuable from a financial point of view, and why? (Answer the question correctly and in-depth.)
- Why is it important to analyze profitability, specifically focusing on return on investment? Invoke the breakdown of ROI in thinking about your response.Evaluate the following statement: Do the ends of positive organizational consequences justify the means of earnings management?How do managers, bankers, and security analysts use (a) trend analysis, (b) benchmarking,(c) percent change analysis, and (d) commonsize analysis?