Below Are Three Relationships That Are Important to the Determination

question 43

Essay

Below are three relationships that are important to the determination of profitability.Assume assets were $22,900,000 on Dec.31,2008.1.Operating leverage = Earnings before interest but after taxes
Average assets.
2.Financial structure leverage = Net income available to common shareholders
Earnings before interest but after taxes
3.ROCE = ROA × Common earnings leverage × Financial structure leverage

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Definitions:

Glabellar Reflex

A reflex elicited by tapping the forehead between the eyebrows, leading to a transient blink response; often used to assess neurological function.

Achilles Reflex

A reflex action of the foot, elicited by a sudden stretch of the Achilles tendon, indicating normal function of the lower segment of the spinal cord.

Plantar Reflex

A reflex elicited by stroking the sole of the foot, used to assess the integrity of the spinal cord and higher brain centers; a normal response curls the toes, while the Babinski sign indicates neurological concerns.

Biceps Reflex

A reflex test that evaluates the function of the spinal cord by striking the biceps tendon and observing arm movement.