A firm is capital intense in its operations, like a railroad.This firm will most likely...

A firm is capital intense in its operations, like a railroad. This firm will most likely have a:

	a.	low Profit Margin on Sales
	b.	low Total Asset Turnover
	c.	low Liquidity
	d.	low Stock Price

Expert Solution

Correct answer: b. low Total Asset Turnover

Capital intensive ratio is inverse of Total Assets Turnover ratio. Thus, when a firm is capital intense then it would have low total assets turnover.

jeff jeffy answered 3 years ago

Which of the following would likely encourage a firm to increase the debt in its capital...

Which of the following would likely encourage a firm to increase the debt in its capital structure? a. the corporate tax rate increases b. the personal tax rate increases c. due to market changes, the firm's assets become less liquid d. changes in bankruptcy code make bankruptcy less costly to the firm e. the firms sales and earnings become more volatile provide rational for each letter in order to support your decision.

Which of the following would likely encourage a firm to increase the debt in its capital...

Which of the following would likely encourage a firm to increase the debt in its capital structure? Provide rationale for your position on each option. a. Corporate tax rate increases b. personal tax rate increases c. Due to market changes, the firm's assets become less liquid d. changes in the bankruptcy code make bankruptcy less costly to the firm e. the firm's sales and earnings become more volatile

Theta Company reported the following for its most recent year of operations, (in millions): Capital expenditures:...

Theta Company reported the following for its most recent year of operations, (in millions): Capital expenditures: $163.10 Net income: $46.10 Depreciation expense: $49.00 Theta Company uses the indirect method of preparing the statement of cash flows. How will these items effect the statement of cash flows?

Dow Chemical, a US-based firm, seeks to hedge most of the exposure of its European operations...

Dow Chemical, a US-based firm, seeks to hedge most of the exposure of its European operations by borrowing in Swiss francs (CHF). At the same time the French tire manufacturer Michelin is seeking US dollars to finance additional investment in its US manufacturing plants. Both firms want the equivalent of $150 million US dollars in fixed-rate financing for 10 years. Dow can issue dollar-denominated debt at an interest rate of 7.5 percent per year, or Swiss franc denominated debt at...

Which of the following decisions is most likely to affect a firm’s capital structure and is...

Which of the following decisions is most likely to affect a firm’s capital structure and is therefore a financing decision? A) acquiring another company using cash B) spend $7.6 billion on research and development C) issue new corporate bonds

1.According to Porter, internal rivalry is likely to be more intense when ______. a. consumer switching...

1.According to Porter, internal rivalry is likely to be more intense when ______. a. consumer switching costs are low b. industry (market) growth is slow c. brand loyalty is significant d. Both (a) and (b) are correct. 2.Which of the following is valuable in a standards war? a. Competitive advantage. b. Late mover advantage. c. Early mover advantage. d. Technological advantage. 3.The use of the SSNIP (Small but Significant Nontransitory Increase in Price) test presents some difficulties when it is...

Supporters of increased social responsibility would most likely say that the goal of a firm is to _______

Supporters of increased social responsibility would most likely say that the goal of a firm is to _______ maximize profits while obeying the law. create value and benefits for owners, employees, and society. beat the competition and stay in business. provide jobs for the community and make a reasonable profit. maximize shareholders' wealth.

Q. An investment management agreement between a firm and a client is most likely an: ad...

Q. An investment management agreement between a firm and a client is most likely an: ad hoc document. internal document. external document. Q. A convertible bond: is a hybrid security. usually trades below its conversion value. typically gives the issuer the right to convert it into a pre-specified number of shares. Q. The CFA Institute Code of Ethics stipulates that members must: concentrate on the integrity and viability of domestic capital markets over international markets. maintain and improve their professional...

Question 1 Which kind of conflict is most likely to result in better team outcomes like...

Question 1 Which kind of conflict is most likely to result in better team outcomes like increased energy and creativity, rather than negative feelings and poor team performance? (pick one) a) A high amount of process conflict where it is hard for the team to figure out how to delegate b) A moderate amount of relationship conflict where everyone somewhat dislikes each other c) A low level of overall conflict, where people avoid discussing problems d) Moderate conflict focused on...

Which of the following is most likely to be an oligopolist (a firm competing in the market structure known as oligopoly)?

Which of the following is most likely to be an oligopolist (a firm competing in the market structure known as oligopoly)?One of many salons in townA small wheat farmer who is a "price taker"One of only a few major video game console companies in a market, like SonyThe only electric utility company serving a city, like MG&E

Question

A firm is capital intense in its operations, like a railroad.This firm will most likely...

Solutions

Expert Solution

Related Solutions

Which of the following would likely encourage a firm to increase the debt in its capital...

Which of the following would likely encourage a firm to increase the debt in its capital...

Theta Company reported the following for its most recent year of operations, (in millions): Capital expenditures:...

Dow Chemical, a US-based firm, seeks to hedge most of the exposure of its European operations...

Which of the following decisions is most likely to affect a firm’s capital structure and is...

1.According to Porter, internal rivalry is likely to be more intense when ______. a. consumer switching...

Supporters of increased social responsibility would most likely say that the goal of a firm is to _______

Q. An investment management agreement between a firm and a client is most likely an: ad...

Question 1 Which kind of conflict is most likely to result in better team outcomes like...

Which of the following is most likely to be an oligopolist (a firm competing in the market structure known as oligopoly)?