vest in projects with a positive Rol regardless of the cost of capital Question 24 5 pts Based on the following, which is true? Company 1 - Return on Assets: 10.0%, Net Profit Margin: 8,5%, Debt/Equity: 0.8x Company 2 - Return on Assets: 8.2%, Net Profit Margin: 7.7%, Debt / Equity: 10% Company 3 - Return on Assets: 14.2%, Net Profit Margin: 10.1%, Debt/Equity: 1.4x Company 2 is more efficient at generating sales from assets than Company 1 Company 3 is the worst at generating profits from its sales Company 1 is the worst at generating profits from its assets Company 2 is the least leveraged form Company 3 is the most leveraged firm Cash balances will be lower in the current period Question 23 5 pts Which of the following is true regarding capital budgeting? Issuing long term debt is an example of a capital budgeting decision A company should invest in projects with a projected ROI than cost of capital A company should invest in projects with a positive ROI regardless of the cost of capital 5 pts Question 24