1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
timofeeve [1]
3 years ago
6

So given your knowledge of the component ratios used in the DuPont equation, which of the following strategies should improve th

e company’s ROE? Check all that apply.(A) Increase the firm’s bottom-line profitability for the same volume of sales, which will increase the company’s net profit margin.(B) Decrease the amount of debt financing used by the company, which will decrease the total asset turnover ratio.(C) Decrease the company’s use of debt capital because it will decrease the equity multiplier.(D) Increase the efficiency of its assets so that it generates more sales with each dollar of asset investment and increases the company’s total asset turnover.
Business
1 answer:
Nookie1986 [14]3 years ago
6 0

Answer:

(A) Increase the firm’s bottom-line profitability for the same volume of sales, which will increase the company’s net profit margin.

(D) Increase the efficiency of its assets so that it generates more sales with each dollar of asset investment and increases the company’s total asset turnover.

Explanation:

Return on Equity is measured as the total return available for equity, or total value for equity.

Each increase in net profit will increase the return on equity, as that is the share for equity only.

Similarly when there is increase in efficiency of the assets to generate more sales and accordingly more revenue with the same amount of investment, this will increase the return on equity.

Return on Equity is basically measured through three parameters:

  • Operating efficiency which is basically the operating profit generated.
  • Asset usage, that means the total assets used for the output.
  • Financial leverage which is calculated through value of equity and assets, there is no significance of debt in it.

Therefore, the valid statements in this context are:

Statement (a) and (d)

You might be interested in
You have a maximum cost-per-click (max. cpc) bid of us$2 for a keyword. to determine the prospective impact of raising this bid
ivann1987 [24]
Bid simulator.This is because a bid simulator allows the user to make changes to the max.cpc and this can change the cost of the number of clicks and the conversion value.They also help you different bids can change your ads.This is critical because this makes one know how to improve the performance.
7 0
3 years ago
ou believe that you can earn 2% more on your portfolio if you engage in full-time stock research. However, the additional tradin
oksian1 [2.3K]

Answer:

C. $12,000

Explanation:

additional earnigns for active management:

800,000 x 0.02% = 16,000

<em><u>expected  </u></em>active management cost:

800,000 x 0.5% = 4,000

net gain: 12,000

At most, we can spend 12,000 dollars.

Up to this point, the expense are cover by the additional return. bove this threshold the fund will incur in losses from the active management

8 0
3 years ago
Policy involves government changes to spending or taxation to affect the economy.
Katarina [22]

Fiscal policy involves government changes to spending or taxation to affect the economy.

<h3>What is meant by fiscal policy?</h3>

This is the use of government tools such as taxes or expenditure in the stimulation of a given economy. The use of fiscal tools could be either for a contractionary government policy or it could be expansionary in nature.

Contractionary means the raise in taxes and the decrease in government spending. The expansionary policy is the opposite of this. Hence we have to say that Fiscal policy involves government changes to spending or taxation to affect the economy.

Read more on Fiscal policy here:  brainly.com/question/6583917

#SPJ1

6 0
2 years ago
In the early 2000’s, mp3 players replaced cd players as the preferred portable music player. this shift in demand was likely the
tester [92]
This shift in demand was likely the result of the improved technology of MP3 players.
Improved technology brought improved quality of MP3 players, which meant that more people were interested in buying them. MP3 players are far more convenient than CD players, because they are smaller, more easily portable, and overall better.
5 0
4 years ago
What is the only bone in the human body not connected to another bone?
Gemiola [76]

Answer:

Hyoid bone

Explanation:

The hyoid is anchored by muscles from the anterior, posterior and inferior directions, and aids in tongue movement and swallowing.

4 0
3 years ago
Other questions:
  • Suppose there is an ordinary deductible of $40 and the maximum payment by the insurer is $130. Determine the standard deviation
    6·1 answer
  • When does information become a liability for an organization?
    7·1 answer
  • Complete the sentence. Entrepreneurs are visionaries who __________. A. anticipates future consumer demands B. wear vision-corre
    13·1 answer
  • Andrew, an employee in a corporate company, is asked to conduct a systematic evaluation of how well the company is meeting its e
    7·1 answer
  • Ketchup is a complement (as well as a condiment) for hot dogs. If the price of hot dogs rises, the quantity of hot dogs demanded
    6·1 answer
  • Red Eye Shipping Inc. has purchased a business intelligence system. The main advantage of such a system is that it eliminates th
    13·1 answer
  • By​ studying, Will can produce a higher​ grade, ​, on an upcoming economics exam. His production function depends on the number
    12·1 answer
  • A general rule in investing is to buy high, sell high<br><br> 1) true<br> 2) false
    6·1 answer
  • Computer Wholesalers restores and resells notebook computers on eBay. It originally acquires the notebook computers from corpora
    14·1 answer
  • A start-up company has developed some innovative products, but it has no marketing or advertising expertise. It hired The Tullen
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!