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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The economic or productive potential of employee knowledge and actions is called
A. human capital. B. labor capital. C. social capital. D. potential capital. E. productivity capital.
All of the following are elements of a properly executed interview EXCEPT ________
A) exhibiting confidence B) using the phrase "no comment" C) keeping answers short and to the point D) connecting with the interviewer on a personal level E) using verbal signposts like "this is an important point"
In response to illegal or unethical behaviors of local union officials, the Landrum-Griffin Act of 1959 allows:
A. Employers to step in on behalf of their workers and take over the union. B. National unions to take over and replace elected local officials with an appointed trustee. C. The NLRB to run an immediate election of new union officials. D. Union members to immediately decertify the union.
Brandon Production is a small firm focused on the assembly and sale of custom computers. The firm is facing stiff competition from low-priced alternatives, and is looking at various solutions to remain competitive and profitable
Current financials for the firm are shown in the table below. In the first option, marketing will increase sales by 50%. The next option is Vendor (Supplier) changes, which would result in a decrease of 10% in the cost of inputs. Finally, there is an OM option, which would reduce production costs by 25%. Which of the options would you recommend to the firm if it can only pursue one option? In addition, comment on the feasibility of each option. Business Function Current Value Cost of Inputs $50,000 Production Costs $25,000 Revenue $80,000