Which of the Following Will Allow Your Firm to Achieve

question 47

Multiple Choice

Which of the following will allow your firm to achieve its targeted 16% ROA with an asset turnover of 2.5?

• A) A leverage ratio of .0667
• B) A P/E ratio of 14
• C) A return on equity of 25%
• D) An operating profit margin of 6.4%

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Definitions:

Distributed Leadership

This is an approach in leadership where authority and decision-making responsibilities are shared across a group or organization.

Decentralized Network

A system where control and decision-making are distributed widely rather than being concentrated in a single point of authority.

Disruptive Activity

Refers to actions or innovations that significantly alter the way businesses or industries operate, often displacing established market leaders.

Minority Domination

Situations where a smaller group, often ethnically, racially, or socioeconomically different from the majority, holds disproportionate power or influence.