If a Firm Decreases Its Operating Costs,all Else Constant,then

question 76

Multiple Choice

If a firm decreases its operating costs,all else constant,then

• A)the profit margin increases while the cash coverage ratio decreases.
• B)the return on assets increases while the return on equity decreases.
• C)both the return on assets and the return on equity increase.
• D)both the profit margin and the equity multiplier increase.
• E)the total asset turnover rate decreases while the profit margin increases.

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Definitions:

Yalta Conference

A meeting held in February 1945 between the leaders of the United States, the United Kingdom, and the Soviet Union to discuss the postwar reorganization of Europe.

Free Elections

Elections characterized by the absence of coercion, with eligible citizens having the right to vote freely for their chosen representatives.

Yalta Conference

A meeting held in February 1945 between the leaders of the United States, the United Kingdom, and the Soviet Union to discuss the postwar reorganization of Germany and Europe.