For Perez Corporation, return on equity is substantially higher than return on investment. What does that tell you about the company?
What will be an ideal response?
Answers will vary
Return on equity is higher than return on investment as a result of financial leverage. When a company uses debt effectively, stockholders benefit, and return on equity exceeds return on investment.
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Indirect expenses are allocated to departments based on
a. generally accepted accounting principles. b. some reasonable basis. c. directives from the board of directors. d. decisions of the stockholders.
Income taxes payable is a current liability
a. True b. False Indicate whether the statement is true or false
Business ethics is concerned with all of the following except
A. distinguishing between ethical decisions that arise in a business setting. B. societal issues such as the sale of products or services that may damage the environment. C. moral and ethical principles that might arise in a business setting. D. distinguishing between moral decisions in a business setting. E. any special duties or obligations that apply to persons engaged in commerce.
Explain open-door policies and describe some of the problems associated with them.
What will be an ideal response?