What Must Happen to Asset Turnover to Leave ROE Unchanged

question 91

Multiple Choice

What must happen to asset turnover to leave ROE unchanged from its original 16 percent level if the profit margin is reduced from 8 percent to 6 percent and the leverage ratio increases from 1.2 to 1.6? Asset turnover must:

• A)Remain constant
• B)Increase from 1.46 to 2.33
• C)Decrease from 14.58 to 2.33
• D)Increase from 4.76 to 9.60 Old ROE: .16 = .08 x Asset turnover x 1.2
• \1)667 = Asset turnover
• New ROE: .16 = .06 x Asset turnover x 1.6

Explain the application of social psychology theories, such as self-presentation theory, in treating and alleviating symptoms of social anxiety.

Distinguish between different types of depression and theories related to their origins, symptoms, and treatments.

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Recognize the role of self-disclosure in fostering mental and physical health.

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Definitions:

Implicit Memory

A type of memory in which previous experiences aid the performance of a task without conscious awareness of these previous experiences.

Long-Term Memory

Long-term memory is the capacity of the brain to store a large amount of information for periods ranging from hours to a lifetime.

Numerical Memory

The ability to remember and recall numbers, sequences of numbers, and numerical information.

Sensory Memory

The shortest-term element of memory, it acts as a buffer for stimuli received through the senses, allowing a trace to be retained for a brief moment after the original stimulus has ceased.