The DuPont system allows a firm to break its return on equity into a profit-on-sales component, an efficiency-of-asset-use component, and a use-of-operating leverage component
Indicate whether the statement is true or false
FALSE
You might also like to view...
A(n) ________ creates the customer's first impression of the store's offering and is the area where retailers place their most compelling merchandise.
A. decompression zone B. planogram C. strike zone D. end cap E. gondola
Industrial distributors perform functions that are most like which intermediary in the consumer products marketing channel?
A. brokers B. wholesalers C. retailers D. manufacturers E. agents
Which of the following statements is CORRECT?
A. Under current laws and regulations, corporations must use straight-line depreciation for all assets whose lives are 5 years or longer. B. Corporations must use the same depreciation method (e.g., straight line or accelerated) for stockholder reporting and tax purposes. C. Since depreciation is not a cash expense, it has no effect on cash flows and thus no effect on capital budgeting decisions. D. Under accelerated depreciation, higher depreciation charges occur in the early years, and this reduces the early cash flows and thus lowers a project's projected NPV. E. Using accelerated depreciation rather than straight line would normally have no effect on a project's total projected cash flows but it would affect the timing of the cash flows and thus the NPV.
Three primary sources of long-term debt financing are notes, leases, and bonds.
Answer the following statement true (T) or false (F)