Return on investment (ROI) can be increased by: O a. increasing sales b. decreasing operating assets O c. decreasing operating income O d. decreasing asset turnover Clear my choice
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- Based on the profit maximization goal, the financial manager would choose Asset D. Asset B. Asset A. Asset C.A company that is seeking to increase return on investment should attempt to decrease: 1. sales 2.productive turnover 3.productiv assets 4. non productive assetsReturn on investment (ROI) could be calculated using which of the following formulas? W Multiple Choice O O X Margin * (Net operating income + Sales) O X O Margin x (Average operating assets + Sales) X Margin * (Sales - Net operating income) Type here to search X Margin × (Sales - Average operating assets) < Prev 2 of 10
- Assuming that sales and expenses will remain unchanged, an increase in the level of assets causes the return on investment (RoI) toWhich of the following will not result in an increase in return on investment (ROI), assuming other factors remain the same? Multiple Choice A reduction in expenses. An increase in net operating income. An increase in operating assets.Which two types of investment criteria are most frequently used by managers today? Multiple Choice O O O O Internal rate of return and net present value Net present value and profitability index Net present value and payback Internal rate of return and payback Average accounting return and internal rate of return D
- Why is it important to analyze profitability, specifically focusing on return on investment? Invoke the breakdown of ROI in thinking about your response.Consider the following three conditions: I. An increase in sales II. An increase in operating assets IIL A reduction in expenses Which of the above conditions provide a way in which a manager can improve return on investment? a. Only I C b.Only I and II C C Only I and III C d.Only II and IIIOperating leverage measures the: 1. Change in profit when sales changes 2. change in contrribution when sales changes 3. change in BEP when fixed cost changes 4. change in BEP when sales changes
- Which of the following will not result in an increase in return on investment (ROI), assuming other factors remain the same? Multiple Choice A reduction in expenses. An increase in net operating income. An increase in operating assets. An increase in sales.Why is profitability analysis necessary, with a particular emphasis on return on investment? When considering your answer, consider the ROI breakdown.Capital investment evaluation methods can be grouped into which of the following two general categories? a. Methods that use average rate of return and methods that use differential analysis b. Methods that do not use variable costing and methods that use variable costing Oc. Methods that do not use present values and methods that use present values Od. Methods that use absorption costing analysis and methods that use incremental analysis