This topic contains a solution. Click here to go to the answer

Author Question: The modified DuPont formula relates the firm's return on total assets (ROA) to its ________. A) ... (Read 87 times)

FButt

  • Hero Member
  • *****
  • Posts: 519
The modified DuPont formula relates the firm's return on total assets (ROA) to its ________.
 
  A) return on equity (ROE)
  B) operating leverage multiplier
  C) net profit margin
  D) total asset turnover

Question 2

In comparing the constant-growth model and the capital asset pricing model (CAPM) to calculate the cost of common stock equity, ________.
 
  A) the CAPM ignores risk, while the constant-growth model directly considers risk as reflected in the beta
  B) the CAPM directly considers risk as reflected in the beta, while the constant-growth model uses the market price as a reflection of the expected risk-return preference of investors
  C) the CAPM directly considers risk as reflected in the beta, while the constant growth model uses dividend expectations as a reflection of risk
  D) the CAPM indirectly considers risk as reflected in the market return, while the constant growth model uses dividend expectations as a reflection of risk



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jessicaduplan

  • Sr. Member
  • ****
  • Posts: 337
Answer to Question 1

A

Answer to Question 2

B





 

Did you know?

Asthma-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

Did you know?

The most common childhood diseases include croup, chickenpox, ear infections, flu, pneumonia, ringworm, respiratory syncytial virus, scabies, head lice, and asthma.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

Blood is approximately twice as thick as water because of the cells and other components found in it.

Did you know?

Over time, chronic hepatitis B virus and hepatitis C virus infections can progress to advanced liver disease, liver failure, and hepatocellular carcinoma. Unlike other forms, more than 80% of hepatitis C infections become chronic and lead to liver disease. When combined with hepatitis B, hepatitis C now accounts for 75% percent of all cases of liver disease around the world. Liver failure caused by hepatitis C is now leading cause of liver transplants in the United States.

For a complete list of videos, visit our video library