An equation in which total assets are multiplied to profit margin is classified as:
A. Du DuPont equation
B. Turnover equation
C. Preference equation
D. Common equation
Ratios which relate firm’s stock to its book value per share, cash flow and earnings are classified as:
A. Return ratios
B. Market value ratios
C. Marginal ratios
D. Equity ratios
Profit margin multiply assets turnover multiply equity multiplier is used to calculate:
A. Return on turnover
B. Return on stock
C. Return on assets
D. Return on equity
A point where profile of net present value crosses horizontal axis at plotted graph indicates project:
A. Costs
B. Cash flows
C. Internal rate of return
D. External rate of return
Projects which are mutually exclusive but different on scale of production or time of completion then the:
A. External return method
B. Net present value of method
C. Net future value method
D. Internal return method
Company low earning power and high interest cost cause financial changes which have:
A. High return on equity
B. High return on assets
C. Low return on assets
D. Low return on equity
In independent projects evaluation, results of internal rate of return and net present value lead to:
A. Cash flow decision
B. Cost decision
C. Same decisions
D. Different decisions
Price per share divided by earnings per share is formula for calculating:
A. Price earnings ratio
B. Earning price ratio
C. Pricing ratio
D. Earning ratio
Total assets divided common equity is a formula uses for calculating:
A. Equity multiplier
B. Graphical multiplier
C. Turnover multiplier
D. Stock multiplier
Companies that help to set benchmarks are classified as:
A. competitive companies
B. Benchmark companies
C. Analytical companies
D. Return companies
