Hanson corporation's present year ROE remained at last year's 14% level, while the profit margir were reduced from 8% to 4% and the leverage ratio increased from 1.2 to 1.5. The effects on asset turnover were? a. Remain constant b. Increase from 1.46 to 2.33 c. Decrease from 14.58 to 2.33 d. Increase from 4.76 to 9.60
Hanson corporation's present year ROE remained at last year's 14% level, while the profit margir were reduced from 8% to 4% and the leverage ratio increased from 1.2 to 1.5. The effects on asset turnover were? a. Remain constant b. Increase from 1.46 to 2.33 c. Decrease from 14.58 to 2.33 d. Increase from 4.76 to 9.60
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.1.3MBA: Financial leverage MicrosoCortrepotied (MSFT) reported the following data (in millions) for a tern...
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Hanson corporation's present year ROE remained at last year's 14% level, while the profit margir were reduced from 8% to 4% and the leverage ratio increased from 1.2 to 1.5. The effects on asset turnover were?
a. Remain constant
b. Increase from 1.46 to 2.33
c. Decrease from 14.58 to 2.33
d. Increase from 4.76 to 9.60
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