In Berkshire Hathoway Annual Reports Warren Buffet Highlights Financial Tenets

question 52

Multiple Choice

In Berkshire Hathoway annual reports Warren Buffet highlights financial tenets that he believes are important.Which of the following is not a financial tenet of Warren Buffet?

• A) Focus on return on equity (ROE) not earnings per share (EPS).
• B) Calculate owner earnings similar to free cash flow after capital expenditures.
• C) High profit margins relative to the industry.
• D) Company should create at least one dollar of market value for every dollar retained.
• E) All of the above are financial tenets of Warren Buffet.

---

Definitions:

Rotation

The act of turning around a center or an axis, often used metaphorically to describe a systematical shift in processes or roles.

Budget Line

A graphical depiction of all possible combinations of two goods that a consumer can purchase with a given income and prices.

Price of Food

The cost at which food items are sold, determined by various factors including supply, demand, production costs, and market conditions.

Price of Clothing

Refers to the amount of money required to purchase clothing items, which can vary based on brand, quality, demand, and other factors.