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Author Question: Companies HD and LD are both profitable, and they have the same total assets (TA), total fixed ... (Read 54 times)

nods

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Question 1

Chambliss Corp.’s total assets at the end of last year were $540,000 and its EBIT was $130,200. What was its basic earning power (BEP)?

22.06%


23.50%


24.11%


25.20%



Question 2

Companies HD and LD are both profitable, and they have the same total assets (TA), total fixed assets (FA), Sales (S), return on assets (ROA), and profit margin (PM). However, Company HD has the lower debt ratio. Which of the following statements is correct?

Company HD has a lower ROE than Company LD. 


Company HD has a higher equity multiplier than Company LD.


Company HD has a lower fixed assets turnover than Company LD. 


Company HD has a higher total assets turnover than Company LD.



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Marked as best answer by nods on Aug 7, 2023

labrinker

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nods

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)


triiciiaa

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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