Question
Choose the correct answer from the following Options 1- The primary goal of the corporation manager is a) Avoid the negative relations among Profitability and
Choose the correct answer from the following Options
1- The primary goal of the corporation manager is
a) Avoid the negative relations among Profitability and Value Maximization. b) Avoid the negative relations among Liquidity and Value Maximization. c) Avoid the negative relations among Profitability and Liquidity. d) None of the options.
2- Operating Leverage explains
a) The firms ability to pay interest to the lender. b) The firms ability to pay amount of Debt to the lender. c) The financing debt as a part of capital structure. d) None of the option
3- If a firms ROE and ROA are different, this implies that the firm is
a) Financed entirely with common equity (That is, common equity = total assets). b) Financed entirely with Debt & common equity. c) Financed entirely with Debt (That is, total debt = total assets). d) None of the Options.
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