2A2R INTERSTATE MOTORS HAS DECIDED TO MAKE AN ADDITIONAL INVESTMENT I...
67.
CSO: 2A2d
LOS: 2A2r
Interstate Motors has decided to make an additional investment in its operating assets
which are financed by debt. Assuming all other factors remain constant, this increase in
investment will have which one of the following effects?
Operating
Return on
Income
Operating
Operating
Margin
Asset Turnover
Assets
a.
Increase
No change
Increase.
b.
No change
Decrease
Decrease.
c.
No change
Increase
Decrease.
d.
Decrease
Decrease
Decrease.