If you were an investor considering purchasing the stock of a company and you were concerned about the company's ability to produce income or operating success for a given period of time, which of the following trends would worry you most? O a decreasing inventory turnover ratio an increasing return on common stockholders' equity ratio a decreasing return on assets ratio O an increasing current ratio
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- When considering a top-down approach to fundamental analysis, the impact of macroeconomic factors on a stock’s price can have which of the following effects? an increase in real GDP is followed by improvement in current and expected future profits for companies, leading to higher stock price. an increase in real GDP is followed by performance of industries and subsequent improvement in current and expected future profits for companies, leading to higher stock prices. an increase in real GDP, followed by a significant performance of cyclical industries such as automobile and consumer discretionary, will lead to higher stock prices.Which of the following typically is true for profitability ratios? a. Growth stocks have lower price to earnings ratios.b. Companies in more competitive industries have higher profit margins.c. The gross profit ratio declines as competition increases.d. When a company has debt, its return on equity will be lower than its return on assets.The future earnings are likely to withstand an economic downturn,is situation of? A. defensive companies and stock B. cyclical companies and stock C. Growth companies and stock
- Check all the factors that would be associated with an increase in a firm's price-to-earnings ratio. All the correct factors must be checked to receive credit for getting this question correct . a Increase in the beta of a firm's stock b Decrease in the beta of a firm's stock c Increase in the risk-free rate d Decrease in the risk-free rate e Increase in a firm's growth rate of cash flow f Decrease in a firm's growth rate of cash flow g Increase in the market risk premium h Decrease in the market risk premiumThe price/earnings ratio is commonly used by investors to OA. evaluate their ability to earn a return on their investment OB. determine the market value of the company OC. determine the market price per share of stock of a company OD. determine if the company has a low amount of debtAnswer quickly please The _________ is the internal rate of return a firm must earn on its investment in order to maintain the market value of its stock. a. IRR b. net profit margin c. Cost of Capital d. gross profit margin
- A trend analysis indicates a firm's performance ____. a. at one given point in time b. over time c. without relying on financial ratios d. more accurately than any other type of analysiswhich one is correct please help? QUESTION 36 Investors can form earnings growth expectations from various sources, including ____. a. assumed product development b. current earnings and retention rates c. investors’ required rate of return d. potential sales growthIf a company sells additional common stock and uses the proceeds to increase its inventory level and to increase its cash balances, what is the near-term (immediate) impact (increase, decrease, no change) of this transaction on the following ratios? a. The current ratio will -Select- -Select b. The return on stockhd increase vill -Select- decrease c. The quick ratio will no change d. The debt to total assets ratio will -Select- e. The total asset turnover ratio will -Select-