Which of the Following Statements Is True

question 84

Multiple Choice

Which of the following statements is true?

• A)A decrease in net income decreases both the net profit margin ratio and the total asset turnover ratio.
• B)An increase in average total assets results in a decrease in both the total asset turnover ratio and the net profit margin ratio.
• C)A decrease in average total assets results in an increase in the total asset turnover ratio and a decrease in the net profit margin ratio.
• D)An increase in net income increases both the net profit margin ratio and the return on assets ratio.

Assess the relationship between dividend policies, investment opportunities, and firm growth strategies.

Recognize the role of share repurchases and dividend reinvestment plans in financial strategies.

Understand the effect of firm characteristics on dividend payout ratios.

Evaluate the strategic considerations in setting dividend policies in varied market and firm conditions.

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Definitions:

Biased

Showing preference or prejudice for or against something or someone, often in a way considered to be unfair.

Simple Random Samples

A subset of individuals chosen from a larger set, where each individual has an equal chance of being selected.

Selection Bias

A type of bias caused by selecting non-random data for statistical analysis, which can affect the validity of conclusions.

Systematic Tendency

A consistent, directional bias or movement in a series of data or measurements, often due to a specific cause.