What three relationships does the return on equity analysis


1. Which of the following statements is? FALSE?

A. The payback rule is primarily used because of its simplicity.

B. There is no easy fix for the IRR rule when there are multiple IRRs.

C. In? general, the IRR rule works for a standminus−alone project if all of the? project's positive cash flows precede its negative cash flows.

D. No investment rule that ignores the set of alternative investment alternatives can be optimal.

2. Using the display in figure 13-4, page 305 of our text as a guide, discuss how the Return on Equity presentation can facilitate the integration of the financial plan and the management control process. Also, what three relationships does the return on equity analysis presentation provide to the strategic planning process?

The figure apply that fact :

Return of equity = operating margine ration percent

Total asset turn over ratio 0.93

Equity financing ratio perecnt 44.0

non operating revenue percent 2.6

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Financial Management: What three relationships does the return on equity analysis
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