A decomposition of ROE for Integra SA is as follows: Which of the following choices best describes

Question:

A decomposition of ROE for Integra SA is as follows:

image text in transcribed

Which of the following choices best describes reasonable conclusions an analyst might make based on this ROE decomposition?
A Profitability and the liquidity position both improved in FY12.
B. The higher average tax rate in FY12 off set the improvement in profitability, leaving ROE unchanged.
C. The higher average tax rate in FY12 off set the improvement in efficiency, leaving ROE unchanged.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

International Financial Statement Analysis CFA Institute Investment Series

ISBN: 9780470287668

1st Edition

Authors: Thomas R. Robinson, Hennie Van Greuning CFA, Elaine Henry, Michael A. Broihahn, Sir David Tweedie

See More Books

Question Posted: Feb 14, 2024 09:00 AM

See More Questions

An analyst collects the information shown in Exhibit 16 for two companies: Which of the following choices best describes reasonable conclusions an analyst might make about the companies efficiency?...
Referring to the data for Anson Industries and Clarence Corporation in Example 14 , which of the following choices best describes reasonable conclusions an analyst might make about the companies ROE?...
Which of the following choices best describes reasonable conclusions an analyst might make about the companys liquidity? A. Comparing FY14 with FY10, the companys liquidity improved, as indicated by...
Kim Corporation, a calendar year taxpayer, has manufacturing facilities in States A and B. A summary of Kims property holdings follows. Determine Kims property factors for the two states assuming...
What is the 80/20 rule as it relates to target marketing?
A bar is sliding along a set of connected conducting rails as shown in Figure P29.37. The bar is given an initial velocity $\vec{v}_{\mathrm{i}}$ to the right and then allowed to move freely. The...
In Example 6.7, let $m_{1}=3 m_{2}$. (a) Where on axis A is the center of mass of the two-cart system? (b) Where on axis A would you need to place a third cart of inertia $m_{3}=m_{1}$ so that...
Hal, Steve, and Lew form a partnership to operate a grocery store. For each of the following contributions by the partners, indicate (1) the amount of income or gain recognized, if any, by the...
15. 16. What is the final product (major) 'A' in the given reaction? CH3 OH CH CH3 HCI + 'A' (major product) CH3 CH3 Cl CH (B) CH3 CH2-CH3 (A) CH3 CH (C) shiks CH=CH2 (D) Which of the following...
A decomposition of ROE for Company A and Company B is as follows: An analyst is most likely to conclude that: A. Company As ROE is higher than Company Bs in FY15, and one explanation consistent with...
An analyst compiles the following data for a company: Based only on the information above, the most appropriate conclusion is that, over the period FY13 to FY15, the companys: A. net profit margin...
When aggregate output is below the natural rate of output, what happens to the inflation rate over time if the aggregate demand curve remains unchanged? Why?
This Assignment will assess the following Course Outcomes: AC490-1: GAAP Application: Apply the conceptual framework of the Generally Accepted Accounting Principles to business applications. AC490-2:...
Solve LP Model for the problem stated below in Excel and submit your file Production Capacity: 160 computers per week 50 more computers with overtime Assembly Costs: $190 per computer regular time;...
The inventory costing method that has the advantages of assigning an amount to inventory on the balance sheet that approximates its current cost, and also follows the actual flow of goods for most...
Explain the number (intrinsic value - current price) based on the FCF, WACC, and 8.4% Growth Rate & why this number is not the same to the current price? Based on your analysis, is Tesla...
Question 1 (10 points) The annual health expenditures in the province of Ontario from 1990 to 2020 are given by the function: F(t)=296(1.08)' billion dollars 0t30 where t = 0 represents 1990....
Briefly summarize how a network is drawn.
A company produces earbuds. The revenue from the sale of x units of these earbuds is R = 8x. The cost to produce x units of earbuds is C = 3x + 1500. In what interval will the company at least break...
Give an example of how a firm has used information technology to improve its marketing implementation and do a better job of meeting your needs.
Should marketing managers leave it to the accountants to develop reports that the marketing manager will use to improve implementation and control? Why or why not?
Various breakdowns can be used for sales analysis depending on the nature of the company and its products. Describe a situation (one for each) where each of the fol lowing brea k downs would yield...
Are there any financial projection one could make specifically for Huntley school district 158?
The purchase cost for a new project is $20 million. The shipping and installation costs are $2 million. With the MACRS depreciation policy, what is the remaining book value of the fixed assets at the...
7 . Marginal Analysis The Ajax Corporation has the following set of projects available to it: Project Investment Required Expected Rate of Return ($ Million) (%) A 500 23.0 B 175 18.0 C 50 21.0 D...

A decomposition of ROE for Integra SA is as follows: Which of the following choices best describes

Question:

ROE Tax burden Interest burden EBIT margin Asset turnover Leverage FY12 18.90% 0.70 0.90 10.00% 1.50 2.00 FY11 18.90% 0.75 0.90 10.00% 1.40 2.00

Step by Step Answer:

Based on the ROE decomposition for Integra SAit is not possible to draw conclusions about the compan...View the full answer

International Financial Statement Analysis CFA Institute Investment Series

Students also viewed these Business questions