Year Mason Inchad a Total Assets Turnover of 1

question 10

Multiple Choice

year Mason Inchad a total assets turnover of 1.33 and an equity multiplier of 1.75 Its sales were $195,000 and its net income was $10,549 The CFO believes that the company could have operated more efficiently, lowered its costs, and increased its net income by $5,250 without changing its sales, assets, or capital structure Had it cut costs and increased its net income in this amount, by how much would the ROE have changed?

• A) 5.66%
• B) 5.95%
• C) 6.27%
• D) 6.58%
• E) 6.91%

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Definitions:

Simple Exponential Smoothing

A time series forecasting method for univariate data that can be used to forecast data without any clear trend or seasonal patterns.

Observable Trend

A pattern, change, or movement in data that can be detected and assessed through analysis over a certain period.

Seasonality

The phenomenon in sales or industry performance that recurs consistently in specific seasons of the year, affecting demand and supply dynamics.

Time-Series Forecasting Methods

Statistical techniques used to analyze and make predictions based on data points collected or indexed in time order.