1. What is the difference between Leadership and Management? One paragraph essay answer would be nice.
2. Calculate the DuPont ratio for Big Dog Productions. The firm has a net profit margin of 9.00%, asset turnover of 1.32, and an equity multiplier of 2.65. What is the Dupont Ratio for Big Dog in 2012?
3. Starmoose has a building that was built a long time ago for $500,000. It plans to use this building for a new project. Should the company consider the cost of this building in their cash flow estimation analysis of this new project?
A. Yes, this cost should be divided by the number of periods and added to each period.
B. Maybe, depending on whether the company is small or large.
C. No, because this cost is not an incremental cash flow and would have existed regardless of whether the company takes on the project or not.
D. Yes, because this is an initial cost that should be included in the initial outlay.