question 1. Although the PM for center iInc. is above the industry average PM, its ROA is below the industry average ROA. Using the Dupont Analysis, this can be explained by

a. Center uses no debt in its capital structure

b. Centor's equity multiplier is lower than the industry average .

c. Centors ROE must be below the industry average

d. Centors total asset turnover must be above the industry average

e. centers total asset turnover must be below the industry average

Question 2. Which one of the following actions will increase the internal growth rate o a firm, all else held constant?

a. decrease in the return on assets

b. decrease in the return on equity

c. an increase in the retention ratio

d. decrease in the net income

e. increase in the dividend payout ratio

Question 3. Which of the following is not one of the factors that cause a corporation to have a significant advantage over a partnership or a propertorship?

a. Ease of transfer of ownership interest

b. Unlimted life

c. limited Liability

d. Elimination of double taxation

Question 4. which one of the following actions will increase the current ratio, all else constant? Assume the current ratio is greater than 1.0.

a. cash purchase of inventory

b. cash payment of an account payable

c. cash payment on an account receivable

d. credit sale of inventory at cost

e. cash sale of inventory at loss

question 5. which one of the following combinations will always result in an increased dividend yield (dividend /stock price)?

a. increase in the stock price combined with a higher dividend amount

b. increase in the stock price combined with a constant dividend amount

c. increase in the stock price combined with a lower dividend amount

d. decrease in the stock price combined with a higher dividend amount

e. decrease in the stock price combined with a lower dividend amount

Question 6. IF a firm has a 100 percent dividend payout ratio, then the internal growth rate of the firm is

a. zero percent

b. infinite

c. 100 percent

d. equal to the ROA

e. negative