7. Which of the following is true: a. If two companies have the same ROA, the firm with higher debt may have a lower ROE b. Other factors remain unchanged, if DSO increases it may cause total asset turnover (TATO) increase. c. A company's debt ratio increases, revenue and operating costs remain constant, which can lead to lower margins. d. The ratio of long-term debt to total equity seems fluctuate more seasonally than its DSO or inventory turnover.

7. Which of the following is true: a. If two companies have the same ROA, the firm with higher debt may have a lower ROE b. Other factors remain unchanged, if DSO increases it may cause total asset turnover (TATO) increase. c. A company's debt ratio increases, revenue and operating costs remain constant, which can lead to lower margins. d. The ratio of long-term debt to total equity seems fluctuate more seasonally than its DSO or inventory turnover.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 41MCQ

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Similar questions

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