Which of the following statements is most correct?

Q: XYZ Company wishes to gain more market share. In order to do that, the company is planning to double…

A: Hypothetical example based on the plan of XYZ Company: Effect on profit=Increase.

Q: price-earnings ratio that is higher than other similar firms

A: A high price-earning ratio implies more price has to be paid for acquiring the stocks of the firm…

Q: Which of the following is not one of the benefits of breakeven analysis to businesses? A.…

A: A break-even analysis is a financial tool

Q: Company X is competing with company Y. These are their ratios:   x y Profit Margin .144 .172 ROA…

A: Profit margin is the margin calculated by comparing the sale value with the cost associated with it.…

Q: Question-. If a pure monopolist can price discriminate by separating buyers into two or more groups:…

A: In this question, we are required to determine the implication of a monopolist dividing buyers into…

Q: XYZ Company wishes to gain more market share . In order to do that , the company is planning to…

A: Variable cost is a cost that remains the same on a per unit basis and varies according to units…

Q: Which of the following statements about operating leverage is false? O a. If the degree of operating…

A: Answer

Q: When sales volume increases, which company will experience a larger percentage increase in profit:…

A: Cost Volume Profit Analysis (CVP Analysis): This analysis is helpful in determining that how any…

Q: l Management) Everything else held constant, will an increase in the amount of inventory on hand…

A: Inventory is very important in business and keeping sufficient inventory is necessary but keeping…

Q: Assuming you have done the financial ratio analysis and you have realized that profitability is…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS   After looking at the case study, there is a lot of…

Q: Arruza Co. is considering switching from the specific-goods LIFO approach to the dollar-value LIFO…

A: a. b. c. d.

Q: The degree of operating leverage Select one: O a. can be computed by dividing total contribution…

A: Leverage is the risk that a company bears.

Q: Explain what the significance of having a high/low Price-to-Book ratio means about the company's

A: Price/Book value is ratio of stock price in actual market and book value is value of share as books…

Q: Please answer with reason for all why the option is correct and why the other options are incorrect…

A: Return on equity ( ROE) is profitability of a company in relation to it's total equity. It is…

Q: XYZ Company wishes to gain more market share. In order to do that, the company is planning to double…

A: given that, Selling price will receive to half  Variable price per unit will constant Fixed cost…

Q: A firm has decided to switch from variables? Assume an inflationary environment. Net profit will: OA…

A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method. FIFO…

Q: Show with a formula that describes the average estimatesustainable sales growth. Then, make a clear…

A: Sustainable growth means Growth for the future customers such as petroleum industries advertise…

Q: 2. List the financial weaknesses and strengths of the company by comparing the following ratios with…

A: Current Ratio:Company: 1.77Industry: 2.20Interpretation: The company's current ratio is slightly…

Q: Which of the following performance measures will increase if inventory decreases and all else…

A: Return on investment measures the net earned on the assets employed by the business.

Q: By modifying the break-even equation, a company is able to determine the sales required to earn a…

A: ·        CVP analysis is used to identify the changes in costs and volume affect a company's…

Q: Calculating the margin of safety (MOS) measure will help a firm answer which of the following…

A: The objective of the question is to identify which of the given questions can be answered by…

Q: XYZ Company wishes to gain more market share. In order to do that, the company is planning to double…

A: XYZ company wishes to gain market share. Current Production doubled means quantity is doubled. Fixed…

Q: Which of the following statements is true? A In linear break-even analysis, the contribution margin…

A: As per the linear break-even model, the contribution margin per unit is the difference between the…

Q: Times Interest Earned Ratio A1 Compute the times interest earned ratio and use it to analyze…

A: Here in this question, we are required to calculate the times interest earned ratio. Times interest…

Q: A high operating margin implies that ______________ . The company is in a better position to…

A: Operating margin means proportion of operating income over sales

Q: Assuming everything else constant, which of the following will NOT make net profit margins increase?…

A: The objective of the question is to identify which of the given scenarios will not lead to an…

Q: Which of the following is true? a. If the payment term of n/20 shifted to 5/10, n/20 to start…

A: Solution:- Cash discount means the discount offered by the entity to its customers is they pay…

Q: Explain any FOUR (4) methods in analyzing the mixed cost. There are few ways to determine or…

A: Analyzing financial statements is crucial for evaluating a company's performance and making informed…

Q: r = discount rate C = net cash flow (the profit) at time t (The initial cost of ac- quiring a…

A: The net present value of a series of cashflow can be defined as the sum of present values of the…

Q: Give typing answer with explanation and conclusion Which of the following is false? A) All else…

A: Interval measure shows how many days a business can run with funds on hands. A more interval measure…

Q: Suppose sales volume increase by the same percentage for Company X and Company Y.  Use CVP analysis…

A: Cost volume profit (CVP) analysis is the one which is helpful in analyzing the costs and profits of…

Q: (a) Explain one reason why gross profit margin of Firm-B is lower than that of Firm-A. (b) Suggest…

A: Gross profit margin = gross profit/sales = (sales - cost of goods sold)/sales Net profit margin =…

Q: What is the interpretation of a price-to-book ratio = 1? Select one: a. The selling price of the…

A: PB ratio is a commonly used ratio in the industry to identify the stocks for investing. It comes…

Q: m's asset furnover measures: how efficiently the firm is utilizing its assets to generate sales. the…

A: Assets turnover ratio is sales divided by assets required for sales.

Q: True or False: All else being equal, a decrease in a company's profit margin will result in an…

A: Return on assets = Net income / Total assets So, if the profit margin decreases then, the return on…

Q: 1. The more optimistic investors are about a company’s future profits, the ________ the ratio of the…

A: Market value is the total value of stocks that company fetch in the market. It is calculated by…

Q: It has been suggested that when applied to the percentage growth rate in a business, the law of…

A: A business, during its initial stages and phases, sees more growth. With passage of time as the size…

Q: What can you say about the market value of the company? is it positve or is negative?

A: In finance market value of a company is the worth of the company and the worth of the company is…

Q: Consider the following​ statements:      1. Businesses that are capital intensive tend to have high…

A: Lets understand the meaning of operating gearing. Operating gearing reflect the relation ship…

Q: Financial leverage indicates -

A: Financial Leverage: It is the use of debt capital for purchasing more assets. The company takes…

Q: y profit margin is 0.6 and the current ratio is 0.6, is it advisable to invest in

A: Profit margins and liquidity is very important parameter for company and they must be good and…