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NEW QUESTION: 1
The following ratios relate to an entity's financial situation compared with that of its:
What conclusion could a financial analyst validly draw from these ratios?
A. The entity's shares have a higher market value to carrying amount than does the rest of the industry.
B. The entity's product has a high market share, leading to higher profitability.
C. The entity's profits are increasing over time.
D. The entity uses more debt than does the average entity in the industry.
Answer: D
Explanation:
The use of financial leverage has a multiplier effect on the return on assets. The extended Du Pont formula illustrates this point by showing that the return on equity equals the return on assets times the grace factor, also called the equity multiplier total assets -ordinary equity). Thus, greater use of debt increases the equity multiplier and the return on equity. In this example, the equity multiplier is 1:12 15.2% ROE / 7.9% ROA), and the industry average is 1.40 12.9% ROE / 9.2% ROA). The higher quality multiplier Indicates that the entity uses more debt than the industry average.
NEW QUESTION: 2
An administrator runs third-party software in a virtual machine (VM). The third-party licensing agreement requires payment of a license fee for each host to which the VM migrates.
How can the administrator configure Distributed Resource Scheduler (DRS) to minimize licensing costs?
(Choose the best answer.)
A. Create a 'Virtual Machines to Virtual Machines' affinity rule.
B. Create a 'Should run Virtual Machines to Hosts' anti-affinity rule.
C. Create a 'Virtual Machines to Virtual Machines' dependency rule.
D. Create a 'Must run Virtual Machines to Hosts' affinity rule.
Answer: D
NEW QUESTION: 3
From the following output of cphaprob state,
Which ClusterXL mode is this?
A. Legacy mode
B. Multicast mode
C. Unicast mode
D. Load Balancing Mode
E. New mode
Answer: C
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