If the margin of safety is 0, then The company is precisely breaking even The company is operating at a loss The company is earning a small profit The margin of safety cannot be less than or equal to 0; it must be positive None of these

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 44MCQ: When a Dupont analysis reveals that a company has much higher than average asset turnover and much...
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  • If the margin of safety is 0, then
  1. The company is precisely breaking even
  2. The company is operating at a loss
  3. The company is earning a small profit
  4. The margin of safety cannot be less than or equal to 0; it must be positive
  5. None of these
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