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If the CEO of a large, diversified, firm were filling out a fitness report on a division manager (i.e., grading the manager), which of the

If the CEO of a large, diversified, firm were filling out a fitness report on a division manager (i.e., grading the manager), which of the following situations would be likely to cause the manager to receive a better grade? In all cases, assume that other things are held constant.

a. The divisions basic earning power ratio is above the average of other firms in its industry.

b. The divisions total assets turnover ratio is below the average for other firms in its industry.

c. The divisions total debt to total capital ratio is above the average for other firms in the industry.

d. The divisions inventory turnover is 6, whereas the average for its competitors is 8.

e. The divisions DSO (days sales outstanding) is 40 days, whereas the average for its competitors is 30 days.

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