According to the dupont system of financial ratio analysis

Assignment Help Financial Management

Reference no: EM131606187

1. If me EBIT is $10,000, the interest expenses are $5,000, and the tax rate is 20%, then the net income is $4,000.

True False

2. The net income is $100, sales are $210, total assets are $510, and total equity is $300. According to the DuPont system of financial ratio analysis, ROE is about 35.33%.

True False

3. The major problem with benchmarking involves firms of different sizes making financial statements appear different due simply to the size factor that alone will cause differences in some categories found in financial statements.

True False

4. The U.S. Small Business Administration (SBA) is a government agency with three different loan programs designed to cover a wide array of businesses and their particular needs.

True False

Reference no: EM131606187

Questions Cloud

Cases is bill a holder in due course : Angel investors are lenders who provide funding for new, high-risk ideas. In which of the following cases is Bill a Holder In Due Course?

Common stock valuation : what growth rate would Abercrombie? & Fitch have to provide the? investors?

Calculate simple three-month moving average for each month : Calculate the simple three-month moving average for each month for both companies.

What is the dollar profit or loss on this fra : Assuming a 360-day year, what is the dollar profit or loss on this FRA? How would your answer change if you were short?

According to the dupont system of financial ratio analysis : The net income is $100, sales are $210, total assets are $510, According to the DuPont system of financial ratio analysis, ROE is about 35.33%.

Determine the annualized cost of the loan : Determine the annualized cost of the loan for each of the following outcomes. Interest is based on 90 days and a 360-day year.

What is its p-e ratio today : the common stock of Gresham Technology closed at $26.00 per share, what is its P/E ratio today? What was its P/E ratio yesterday?

Drafts were payable at a definite time : One of the issues was whether the notes and drafts were “payable at a definite time.” How should the court rule on this issue?

Determine the profit from the transaction : In six months, the bond portfolio has fallen in value to $8,952,597. The futures price is 68 16/32. Determine the profit from the transaction.

User Account

All Pages