Question
In: Finance
Your friend says that Company A is doing a great job for shareholders. He says that...
Your friend says that Company A is doing a great job for shareholders. He says that their ROA is high. You point out that shareholders tend to like debt and the Company A has low debt. Furthermore, ROA is biased towards companies with low debt. You suggest that ____________ is a better measure of the job management is doing for shareholders.
Solutions
Expert Solution
DuPont Analysis is a better measure of the job management.
DuPont Analysis = Net Income/ Sales * Sales/ Total Assets * Total Assets/ Average Shareholder Equity
jeff jeffy answered 2 years agoRelated Solutions
Your friend at work says the U.S. economy is not doing well: "We are just not...
Your friend at work says the U.S. economy is not doing well: "We
are just not a strong economy anymore." You are not entirely
convinced by her argument, so you do some research. Here is what
you find: There are three major powers in the world economy
according to total GDP: China at $21.3 trillion; the EU at $19.2
trillion; and the United States at $18.6 trillion (all in real 2016
dollars). Maybe your friend is right? Then you look...
Your friend at work says the U.S. economy is not doing well: "We are just not...
Your friend at work says the U.S. economy is not doing well: "We
are just not a strong economy anymore." You are not entirely
convinced by her argument, so you do some research. Here is what
you find:
There are three major powers in the world economy according to
total GDP: China at $21.3 trillion; the EU at $19.2 trillion; and
the United States at $18.6 trillion (all in real 2016 dollars).
Maybe your friend is right?
Then you look...
Your friend Brett is starting a landscaping business. He says he isn't worried about creating a...
Your friend Brett is starting a landscaping business. He says he
isn't worried about creating a legal form of ownership until
several months after the business is started. "Besides, I can hire
a lawyer if something comes up." What would you tell Brett?
Explain.
Your friend, who took finance classes , says that he has seen the stock price of...
Your friend, who took finance classes , says that he has seen
the stock price of Tesla go up and down like a yo-yo over the past
several months. He says "Tesla is a very volatile stock, the return
fluctuates a lot. Irrespective of whether the market as a whole is
quiet or volatile, there is a lot of volatility in Tesla stock.
This makes it very risky, and I know that higher risk means a
higher discount rate. So,...
Please provide a business that is doing a great job following the 4Es, and also a...
Please provide a business that is doing a great job
following the 4Es, and also a business that is doing a bad job and
may still be thinking like a 4 Ps organization?
Your friend argues real GDP per capita is a poor measure of economic well-being. He says...
Your friend argues real GDP per capita is a poor measure of
economic well-being. He says the statistic fails to consider
factors such as pollution and leisure. Provide a counter argument
that defends the use of real GDP per capita as a welfare
measure.
A friend asked for your advice. He said that he worked for a public company in...
A friend asked for your advice. He said that he worked for a
public company in the financial department. He knows that the
company violated labor wage laws and under-reported wages to save
money on required payments for workers’ compensation insurance. He
believes they may have committed other financial improprieties but
doesn’t have direct knowledge. He feels he helped perpetrated a
fraud and may have himself engaged in unlawful conduct. He feels
particularly aggrieved because he says he always is...
Business I'm interviewing someone for a great job opportunity with a great company and the company...
Business
I'm interviewing someone for a great job opportunity with a
great company and the company has a number of growth opportunities
and is ranked #1 in their industry. I asked the person what makes
you motivated to work in my company, he said the money. What should
I do and think about this person?
Please explain to me in critically thinking.
Thank you.
A smooth used-car salesman is offering you a great deal on a “preowned” car. He says, “For...
A smooth used-car salesman is offering you a great deal on a
“preowned” car. He says, “For only five annual
end-of-the year payments of $2,180, the beautiful 2016 Honda Civic
can be yours.” If you can borrow money a 5.47%, what is
the price of the car? If you are to make the payment at
the beginning of the year, what is the price of the car?
Your friend is worried about his job security and wants to create a startup company. Perhaps...
Your friend is worried about his job security and wants to
create a startup company. Perhaps surprisingly, he is able to take
his startup to IPO within a 5-year period. The firm has just
announced its first dividend of $3/share and the firm’s dividend is
expected to grow extremely fast for 4 years in a row at 30% each
year. However, he expects that the company will only grow at 5%
after that forever. Expected return (discount rate) for stocks...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- What experience have you had with Organization Development or with Change Management? Describe the organization, the...
- 1. Renfro Rentals has issued bonds that have a 12% coupon rate, payable semiannually. The bonds...
- Given an array of positive integers a, your task is to calculate the sum of every...
- Define “culture.” Software is defined by the Merriam-Webster Dictionary as "the programs that run on a...
- In humans, hypotrichosis (sparse body hair) is a rare autosomal recessive condition. Let h = hypotrichosis...
- Increase all of the listing prices by 5% for all listings under $500,000 and 10% for...
- Samsung Industry that requires you to act as a change agent to form an organizational change...
ADVERTISEMENT