Company low earning power and high interest cost cause financial changes which have_____________?
(A) High return on equity
(B) High return on assets
(C) Low return on assets
(D) Low return on equity
In independent projects evaluation, results of internal rate of return and net present value lead to_____________?
(A) Cash flow decision
(B) Cost decision
(C) Same decisions
(D) Different decisions
Price per share divided by earnings per share is formula for calculating_________?
(A) Price earnings ratio
(B) Earning price ratio
(C) Pricing ratio
(D) Earning ratio
Total assets divided common equity is a formula uses for calculating___________?
(A) Equity multiplier
(B) Graphical multiplier
(C) Turnover multiplier
(D) Stock multiplier
Companies that help to set benchmarks are classified as__________?
(A) competitive companies
(B) Benchmark companies
(C) Analytical companies
(D) Return companies
A techniques uses to identify financial statements trends are included____________?
(A) Common size analysis
(B) Percent change analysis
(C) Returning ratios analysis
(D) Both A and B
Profitability index in capital budgeting is used for_________?
(A) Negative projects
(B) Relative projects
(C) Evaluate projects
(D) Earned projects
In mutually exclusive projects, project which is selected for comparison with others must have____________?
(A) Higher net present value
(B) Lower net present value
(C) Zero net present value
(D) All of above
A project whose cash flows are more than capital invested for rate of return then net present value will be___________?
(A) Positive
(B) Independent
(C) Negative
(D) Zero
An equity multiplier is multiplied to return on assets to calculate_________?
(A) Return on assets
(B) Return on multiplier
(C) Return on turnover
(D) Return on stock