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Masco Is a Company That Is Well Recognized in the Construction

question 28

Multiple Choice

Masco is a company that is well recognized in the construction industry.It produces cabinetry,furniture,lighting,and plumbing fixtures for the upper-end homeowner and builder.One of the divisions of Masco is the Delta Faucet Company,which is the leader in the faucet industry.Since its founding in 1955,Delta has developed a legacy based on well-crafted,high-quality products.Since the 1970s,the company has focused its energies on building loyalty with the builder marketplace.Research in 2002 showed that while builders respect the Delta faucet for its quality,durability,and dependability,household consumers were not enamored with Delta products.Due to the number of new magazines and television programs devoted to home style,homeowners wanted faucets that were chic and stylish.This was not the image of the Delta faucet.To change its image,Delta began a marketing program in which it committed itself to developing new products to appeal to homeowners.It adopted a new slogan,"Beautifully Engineered."
-Refer to Delta Faucet.The marketing program,which Delta designed to develop new products to appeal to homeowners,is an example of which of the following?

Definitions:

ROA

Return on Assets represents a financial metric that measures a company's profitability in relation to its overall assets.

Capital Structure

The mix of different forms of external funds used by a firm to finance its activities, including debt and equity.

ROE

Return on Equity (ROE) is a financial ratio that measures the profitability of a company relative to shareholder equity.

Times Interest Earned Ratio

A financial ratio that measures a company's ability to meet its debt obligations, calculated as earnings before interest and taxes divided by interest expense.