Which of the following profitability ratios would be determined through a common size vertical analysis of the income statement?
A. gross profit percentage
B. return on assets
C. return on equity
D. earnings per share
Answer: A
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Research objectives are totally dependent on the problem
Indicate whether the statement is true or false
Sweet Dreams Corp. has prepared the following financial statements:
a) Set up a worksheet similar to the one in Exhibit 4-4, page 124, and calculate all of the ratios for Sweet Dreams Corp.
b) Verify the change in 2017 Sweet Dreams Corp’s ROE using the Du Pont method.
c) Using the Altman’s model for privately held firms and public ones, calculate the Z-score for Sweet Dreams Corp. Assume that the market value of Sweet Dreams Corp. is $1,200,000.
d) Calculate Sweet Dreams Corp.’s economic profit for these years and compare it to net income. Assume that the weighted average cost of capital is 12%.
e) Using the following 2017 industry averages, evaluate Sweet Dreams Corp.’s financial situation. Set up a ratio analysis system similar to the one in Exhibit 3-6, page 92.
________ refers to an extraneous variable attributable to changes in the test units themselves that occur with the passage of time
A) Mortality B) Interactive testing effect C) Maturation D) Main testing effect
The first step in the process of strategic planning is to analyze the company's ________ environment.
Fill in the blank(s) with the appropriate word(s).