Explain the difference between the ROE and ROR for a public
company.
Using this, show how it is possible, from a starting point, for
one to go up and the other to go down.
How is the DuPont system useful in analyzing a firm’s ROA and
ROE? What information can analysts infer by breaking ROE into
contributing ratios? What is the mathematical relationship between
each of the individual components (net profit margin, total asset
turnover, and assets-to-equity ratio) and ROE? Can ROE be raised
without affecting ROA? How?
A condo community management in Florida wants to improve the
amenities they provide for their tenants. In order to make a more
appealing selection of amenities, they want to estimate the mean
age of the people who reside in that community. Based on this
estimation they will decide, for example, whether to offer a free
one year membership to a gym, or a free one year membership to a
fruit-of the-month club. The manager takes a random sample of 50...
Recommend ways in which management can improve a firm’s
financial performance? recommendations should lead to increase in
ROE and/or market value ratios trough business improvements rather
than mechanical statements like reduce total equity.
Q7: How can a firm’s financial leverage boost its
return to common shareholders (ROE)? Use an example to explain
it.
Q10: How to estimate a firm’s optimal capital structure?
Explain how an R-Tree can improve the efficiency of the
fingerprint identification and using an example to illustrate how
to evaluate the quality of an RTree.