We are evaluating whether or not to invest in a company. Indicate whether each of the following
Question:
We are evaluating whether or not to invest in a company. Indicate whether each of the following separate trends would make us more or less likely to invest.
a. Return on equity is increasing, from 19% to 24%.
b. Days’ sales in inventory is increasing, from 22 days to 38 days.
c. Profit margin is decreasing, from 25% to 19%.
d. Return on total assets is increasing, from 12% to 16%.
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a More likely An increase in return on equity suggests an improvement in a companys ability to e...View the full answer
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