One simplifying characteristic of ratio analysis is that once we have created common size statements, the benchmarking of industry ratios becomes redundant because all industries have the same ratios when using common size values
Indicate whether the statement is true or false.
Answer: FALSE
Explanation: Common size statements DO NOT equalize ratios across industries nor across time. Ratios do tend to differ from industry to industry and also over time, and the industry norms change.
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Screening criteria should be in quantitative form-based on factors such as profit and expected sales-so that they are objective and not subject to qualitative judgments and interpretations by different managers.
Answer the following statement true (T) or false (F)
Corbett and Sullivan Enterprises (CSE) use the Modified Internal Rate of Return (MIRR) when evaluating projects. CSE's cost of capital is 9.5%
What is the MIRR of a project if the initial costs are $10,200,000 and the project lasts seven years, with each year producing the same after-tax cash inflows of $1,900,000? A) About 7.95% B) About 8.01% C) About 8.24% D) About 8.88%
?The margin requirement for a futures contract is a 1. small percent of the value of the contract 2. large percent of the value of the contract 3. source of leverage
A. 1 and 2 B. ?1 and 3 C. ?2 and 3 D. ?only 3
As long as the owner continues to use and protect the trademark, the trademark's exclusive use:
a. can last up to 5 years b. can last for between 10 and 20 years, depending on the state c. can be used by others in non-profit endeavors d. can last up to, but not more than, 25 years e. none of the other choices are correct