Low profit margins always imply low return on net operating assets. True or false?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 80% (15 reviews)
False A firm can have a low profit margin PM but compensate with a high asset turnover ATO Look at t...View the full answer
Answered By
Nazrin Ziad
I am a post graduate in Zoology with specialization in Entomology.I also have a Bachelor degree in Education.I posess more than 10 years of teaching as well as tutoring experience.I have done a project on histopathological analysis on alcohol treated liver of Albino Mice.
I can deal with every field under Biology from basic to advanced level.I can also guide you for your project works related to biological subjects other than tutoring.You can also seek my help for cracking competitive exams with biology as one of the subjects.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Accounting questions
-
A firm with a current return on net operating assets of 15 percent anticipates growth insalesof6 percent per year from its current net operating asset base of $498 million. It also anticipates that...
-
Firms with a return on net operating assets (RNOA) that is higher than the required return on operations are adding value with their investments and so should trade at a premium over their book...
-
Return on net operating assets is a function of both profit margin and net operating asset turnover. Required: How do you believe that knowledge of operating profit margin and operating asset...
-
An air-filled X-band rectangular waveguide has dimensions a = 2.286 cm and b = 1.016 cm. If the waveguide has copper walls ( = o , = o , = 5.8 x 10 7 S/m), find the attenuation in dB/m due to the...
-
Budenmayer BV is a small machine shop that uses highly skilled labour and a job-costing system (using normal costing). The total debits and credits in certain accounts just before year-end are as...
-
Hook Industriess capital structure consists solely of debt and common equity. It can issue debt at r d = 11%, and its common stock currently pays a $2.00 dividend per share (D 0 = $2.00). The stocks...
-
(Multiple-step Statement with Retained Earnings) Presented below is information related to Ivan Calderon Corp. for the year 2004. Instructions (a) Prepare a multiple-step income statement for 2004....
-
Network Technologies manufactures capacitors for cellular base stations and other communication applications. The companys July 2014 flexible budget shows output levels of 7,000, 8,500, and 10,500...
-
A general approach that helps decision makers make intelligent choices from different alternatives. a. ADR b. Cost Benefit Assessment c. Decision Theory d. Payoff maxims theory
-
Pequity Company purchased 85% of the common stock of Sequity Company on April 1, Year 1 for total consideration of $545,000 cash plus $50,000 of contingent consideration as measured according to GAAP...
-
Return on total assets (ROA) is a common measure of profitability. The historical average is about 7.0 percent. The historical yield on corporate bonds is about 6.6 percent. Why is the ROA so low?...
-
The following information is from reformulated financial statements (in millions of dollars): a. (1) Calculate the dividends, net of capital contributions, for 2008. (2) Calculate ROCE for 2008; use...
-
Find the limit or show that it does not exist. do lim (Va x + ax Vx2 + bx X>00
-
Pacifico Company, a U.S.-based importer of beer and wine, purchased 1,200 cases of Oktoberfest-style beer from a German supplier for 264,000 euros. Relevant U.S. dollar exchange rates for the euro...
-
Finding Confidence Intervals. In Exercises 9-16, assume that each sample is a simple random sample obtained from a population with a normal distribution. Body Temperature Data Set 5 "Body...
-
19 Part 2 of 2 1.25 points Skipped Required information Problem 6-4A & 6-5A (Algo) [The following information applies to the questions displayed below.] Gerald Utsey earned $48,400 in 2021 for a...
-
Describe equilibrium constants with words and equations. is the ratio of the concentrations of products to the concentration of reactants present in a reaction mixture when chemical equilibrium is...
-
Pronghorn Inc. acquired 20% of the outstanding common shares of Gregson Inc. on December 31, 2019. The purchase price was $1,133,000 for 51,500 shares, and is equal to 20% of Gregson's carrying...
-
How does increased automation affect: (a) a companys breakeven point and (b) the importance of cost accountants fully understanding a companys cost behavior?
-
For the following arrangements, discuss whether they are 'in substance' lease transactions, and thus fall under the ambit of IAS 17.
-
What package includes thread-safe versions of popular collection classes like Queue and Map?
-
Pla purchased a 40 percent interest in Sor, a foreign company, on January 1, 2011, for $342,000, when Sor's stockholders' equity consisted of 3,000,000 LCU capital stock and 1,000,000 LCU retained...
-
Pyl acquired all the outstanding capital stock of Soo of London on January 1, 2011, for $800,000, when the exchange rate for British pounds was $1.60 and Soo's stockholders' equity consisted of...
-
Pet acquired 80 percent of the common stock of Sul for $4,000,000 on January 2, 2011, when the stockholders' equity of Sul consisted of 5,000,000 euros capital stock and 2,000,000 euros retained...
-
A family has a $117,443, 25-year mortgage at 5.4% compounded monthly. (A) Find the monthly payment and the total interest paid. (B) Suppose the family decides to add an extra $100 to its mortgage...
-
Comparing the actual and planned cost of a consulting engagement completed by an engineering firm such as Allied Engineering.
-
What is the NPV of a project that costs $34,000 today and is expected to generate annual cash inflows of $11,000 for the next 7 years, followed by a final inflow of $14,000 in year 8. Cost of capital...
Study smarter with the SolutionInn App