Return on Assets Will Likely Differ Across Firms and Across

question 3

Short Answer

Return on assets will likely differ across firms and across time.Three elements of risk that will help explain these differences are operating leverage,___________________________________,and stage and length of product life cycle.

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Definitions:

Appraisal

An expert estimation of the value of property, typically real estate, art, or jewelry, often for the purpose of taxation, sale, or insurance.

Arbitration Clauses

Arbitration clauses are provisions in a contract that require the parties to resolve disputes through arbitration rather than through litigation in court.

Federal Law

Laws created and enforced by the federal government of a country, as opposed to state, local, or international laws.

Grace Period

A set length of time after a due date during which a payment can be made without penalty.