Two firms, Sunny Inc, and Rainy Inc, are alike in every way. They sell the same products in the same markets for the same price and have equally good reputations. In fact, they even have identical ROEs
If Rainy Inc however, has a higher leverage ratio, then we can conclude that:
A) Rainy Inc. shareholders bear greater financial risk than Sunny Inc. shareholders.
B) Rainy Inc. has a lower ROA.
C) either the net profit margin or the asset turnover ratio for Rainy Inc. is lower than the comparable ratio for Sunny Inc.
D) All of the above are true.
D
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Explain the distinction between intrinsic and associated value as discussed in this chapter. Use examples
What will be an ideal response?
What is the objective in the final stage of the interview process?
A) To eliminate unqualified candidates B) To determine which candidate is the best fit C) To sell the candidate on the advantages of the organization D) To allow the candidate to meet people they will be working with E) To discuss salary and benefit requirements