Return on assets will likely differ across firms and across time
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Return on assets will likely differ across firms and across time. Three elements of risk that will
help explain these differences are _______________, _________________________, and stage
and length of product life cycle
Return on assets can be a misleading ratio when analyzing technology firms because two
important assets, ______________________________ and
______________________________ do not appear on their balance sheets
One problem with using EPS as a measure of profitability is that it does not consider the
amount of ____________________ or ____________________ required to generate a
particular level of earnings.
Short-term ____________________________ measures represent a firm's near-term ability to
generate cash to service working capital needs and debt service requirements.
Long-term ______________________________ measures represent the longer-term ability of
the firm to generate cash internally or from external sources to satisfy plant capacity and debt
repayment needs.
_________________________ is not a measure of long-term solvency risk?
Cash flow hedges are derivative instruments acquired to hedge exposure to variability in
___________________ .
Fair value hedges are derivative instruments acquired to hedge exposure to changes in the fair
value of ____________________.
When firms use _____________ effectively to_____________, the net gain or loss each period
should be relatively small.
Firms in ___________________ bankruptcy are relived from debt obligations unlike firms in
Chapter 7 bankruptcy.
