A 10% Reduction in the Cost of Sales as a Percent

question 11

True/False

A 10% reduction in the cost of sales as a percent of sales will have the same impact on a firm's enterprise and equity values as a 10% increase in revenue.

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Definitions:

Depolarization

A reduction in the difference of electric potential across a cell membrane, leading to the possibility of producing an action potential.

Repolarization

The process by which cells restore their resting negative membrane potential after depolarization.

Cardiac Muscle Cells

Specialized muscle cells found in the heart that contract rhythmically and involuntarily to pump blood throughout the body.

Capillary Network

A complex intertwining of capillaries supplying organs and tissues with nutrients and oxygen and removing waste products.