Un-Uniquely Oppressive. “The Point Of History Is To Learn

Un-uniquely Oppressive â€Å"The point of history is to learn that our time is not uniquely oppressive.† These wise words rang through Purdue’s Fowler Hall on the night of March 1st*, spoken by famed historian, Rice University professor, and CNN contributor Douglas Brinkley as part of his Presidential Lecture alongside Purdue President Mitch Daniels. During a time where bipartisanship has fallen by the wayside and American politics are in upheaval, I went to Brinkley’s lecture hoping to hear bipartisan messages of hope and gain new insights into American political history and the future. Brinkley began his lecture alongside Daniels by letting the audience know about him as a person, who he was before his work and books gained him fame and†¦show more content†¦Daniels’ next question was extremely pertinent to the events surrounding certain controversial and orange skinned politicians. â€Å"How important is character and virtue in a president? Can you be great without them?† I perked up at this question, this was what I had come here to gain more insight into; are politicians supposed to be paragons of morality or must they simply be able to execute the duties of political office? The reply did not dash my hopes to hear hopeful statements that night. Brinkley stated, â€Å"I used to tell students the best presidents don’t lie. Character is good, but you do things for the public that might be deceptive, but are for the greater good.† While I did not find this answer to be particularly revolutionary, it did have a nice message to it. I believe presidents can’t reveal every state secret to the public, simply for the public peace of mind. Brinley’s next step in his talk was to highlight how people from opposing political parties can be alike, despite ideological arguments, thus fulfilling the expectation that he would give hope in a time of political party conflict. Yet again that night he chose to discuss the two political giants Roosevelt and Reagan. As he highlighted the similarities between the two, audience members nodded and the general atmosphere was quite positive. Brinkley pointedShow MoreRelatedPolitical Violence in Africa8046 Words   |  32 PagesPolitical violence in Africa stains the entire fabric of public and private life. African nations, as they achieved freedom from the colonial system, could claim a sense of control over their own destiny that had never been present until that historical point. For as long as they had been modern nation states in Africa, these states were governed by the same European powers that had set the borders of the African nations to begin with. Before the colonial powers had created a jigsaw of the continent thatRead MoreGp Essay Mainpoints24643 Words   |  99 Pagesrole in science c. Rely too much on technology? d. Nuclear technology e. Genetic modification f. Right tech for wrong reasons 3. Arts/Culture a. Arts have a future in Singapore? b. Why pursue Arts? c. Arts and technology d. Uniquely Singapore: Culture 4. Environment a. Developed vs. Developing b. Should environment be saved at all costs c. Are we doing enough to save the environment? d. Main reasons for environmental problems nowadays 5. Religion a. ReligionRead MoreOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 PagesBrier, and Roy Rosenzweig Also in this series: Paula Hamilton and Linda Shopes, eds., Oral History and Public Memories Tiffany Ruby Patterson, Zora Neale Hurston and a History of Southern Life Lisa M. Fine, The Story of Reo Joe: Work, Kin, and Community in Autotown, U.S.A. Van Gosse and Richard Moser, eds., The World the Sixties Made: Politics and Culture in Recent America Joanne Meyerowitz, ed., History and September 11th John McMillian and Paul Buhle, eds., The New Left Revisited David MRead MoreBrand Building Blocks96400 Words   |  386 Pages because the vision of the firm is to move beyond traditional steel and automobile business. Linchpin brands: A linchpin brand unlike strategic brand not necessarily represents a meaningful future level of sales and profit but it is a leverage point of a major business area. It indirectly influences a business by providing a basis for customer loyalty. For ex. ‘Park Avenue’, a brand extension of Raymond’s launched in mid-eighties. It is a linchpin brand for Raymond’s because it has extended the

Analysis paper Cleopatra - 1797 Words

A Critical Analysis of CLEOPATRA LIFE: STACY SCHIFF ANTHONY EVERITT: THE LIFE OF ROME’S FIRST EMPEROR AUGUSTUS ANDREA OVERFIELD: THE HUMAN RECORD SOURCES OF GLOBAL HISTORY, VOLUME1 By Susana E Andrade Professor Lorenz History 4A, Sec. 1985 May 2, 2013 1. Based on your selected book, very briefly describe the scope and focus of your historian work, then, state the historian’s thesis/core argument and sub-thesis. Stacy Schiff in Cleopatra: A life present a well detailed historical past of Cleopatra the last of Egyptian queens. She married twice to a brother. She was treated brutal during the Civil war. Cleopatra only had been with two mean, Caesar and Anthony, and had a kid with Caesar according†¦show more content†¦On the contrary, the great force of history comes from the fact that we carry it within us, are unconsciously controlled by it in many ways, and history is literally present in all we do†. Andrea and Overfield they state the religion is the past, present, and future, as a great example of applying the quote as they mention the Christianity and the Islamic will never die. In addition religion are the past, present, and future and as time goes by there are more people involving into this religions. So history can be related and a good way to express something that has made an impact to society and people lives and those believes never die but the increase more and m ore. Like the Islamic the have a sacred book where you learn a lot things about the ways of style of life according to the Quran book. In addition, there are other religion with a lot of popularity which they have so many believer around the world. Furthermore, the Muslim’s has a big influence on us. Because of their life style and provide the perfect models of life. Because they don fallow the precepts of the Quran. Also they have different points of view the world. They think that Muslim religion in correct and true full and that’s what god’s message introduces the way of have a better religious life. 5. Using Augustus you will develop an argument in which you focus on ONE of the following concepts; Historical Causation, or, Historical Periodization,Show MoreRelatedComparison Of Chinese Empress Wu Zetian And Cleopatra1772 Words   |  8 Pages Anthropology 1105 MW3 Research Paper October 14 2017 Compare and contrast of Ancient Female Rulers (china and egypl) In this paper I’m going to compare and contrast two ancient female rulers. My comparative analysis will examine both powerful rulers Chinese Empress Wu Zetian and Egyptian Pharaoh Cleopatra. They both ruled in many different ways, but what I found both interesting in the comparisonRead MoreAn Examination on Sociocultural â€Å"Marking† of Women – Rhetorical Analysis of â€Å"There Is No Unmarked Woman† by Deborah Tanen1835 Words   |  8 PagesNicole Carper Professor M. Keith English 1101, sec. 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Hsc Belonging Peter Skrzynecki and Ben Heine Free Essays

Individuals may feel a sense of belonging to many people and places. This sense of belonging can enrich the individual, becoming a positive influence on his or her life. Ben Heine is the skilled photographer behind the photograph titled ‘Home’. We will write a custom essay sample on Hsc Belonging Peter Skrzynecki and Ben Heine or any similar topic only for you Order Now This photograph uniquely explores ideas about belonging as to provoke thought in regards to the viewer’s perception of what it actually means to belong. Likewise, these ideas surrounding a connection to people and places are expressed in Peter Skrzynecki’s Immigrant Chronicles. Belonging is the central theme throughout the photograph ‘Home’ which is clearly represented through the caricature of a child girl establishing herself in a fantasy world she is depicted drawing herself into. Ben Heine’s image represents reality versus fantasy which could also be viewed as not belonging and belonging. He has accomplished this through holding a pencilled sketch over a section of adjoining photograph to make something real into a distorted fantasy. Unlike novels, poetry or songs, images cannot be expressed using a considerable amount of words. Instead images must display visual techniques to convey ideas. Heine has incorporated numerous visual techniques into his photograph to achieve such complexity in depth and meaning. As the title of the photograph suggests, this image displays images of home, which provokes emotive thoughts towards the people depicted in the image. Within the salient image is a vector where your eyes are drawn towards and then follow a path to where the artist wishes you to look. In the image ‘Home’ Heine has drawn a vector stemming from the centre of the young girl, which is then followed up the girl’s arm where she has written the simple word ‘Home’ as a logo upon the singular house. This provokes thoughts as to whether the child and her mother standing to her left actually have a place to call ‘Home’. In ’10 Mary Street’, it is the house that provides a literal and psychological place to belong. It signifies the Skrzynecki’s’ search for security, identity and safety and is a refuge from the new and strange environment. The family invests too much in its importance, however, and the personification of the house’s ‘China blue coat’ reveals its fragility and that the nature of belonging to a place is transitory. This reveals the poet’s recognition of the position of vulnerability the family are in at the hand of their rigidity and exposes the dangers of relying on a place to belong. In ’10 Mary Street’ the Skrzynecki’s’ have a home, unlike the little girl portrayed in ‘Home’ who has to draw a fantasy which includes a house and family to belong. The entire photograph ‘Home’ depicts reality versus fantasy. The reality in the image is exemplified by the use of colour whereas the fantasy is shown in black and white sketching. The fantasy is a perfect illusion which would easily be concealed as reality if it weren’t for the obvious contrast between the colour palette, and lack of it. The pencilled fantasy is a perfect world however it is clearly a child’s fantasy. The girl’s mother standing next to her seems oblivious to the girl’s imaginative world. She is absorbed in what is right in front of her; reality. This is similar in ‘St Patrick’s College’ as Peter’s mother is oblivious to her son’s wishes. In the last paragraph the poet states â€Å"prayed that someday mother would be pleased†¦ hat the darkness around me wasn’t â€Å"for the best†. The repetition of this negative phrase â€Å"wasn’t for the best† reinforces Skrzynecki’s negative attitude to his mother’s choice of education for him as she was initially merely â€Å"impressed by the uniforms of her employers sons†. It implies some c riticism for his mother’s choice of school based on the ideas and attitudes of others and perhaps not on what is best for her son’s personality and happiness. The God-like hand stemming from the right hand side of the image ‘Home’ is holding the sketch. It is as though he is giving the girl opportunities, foresight into what her life could be like, a guiding hand making dreams come true. In the fantasy is a simple home and at its base lays a car, happy smiling people united by held hands. It is a wealthy area which is clean, unpolluted and uncrowded. This description is juxtaposed by the reality which is a poor, dirty, polluted, crowded looking area. The people in the fantasy holding hands are a representation of family, happiness, familiarity, safety and acceptance. Interestingly in reality there is just the girl and her mother without a father figure present. However, sketched in the child’s fantasy world there is a family; a mother, a father and a daughter who are united by held hands. This representation of belonging in the fantasy contrasts the reality as in the reality there is a large distance between mother and daughter where the mum and she are separated. This is shown by the tilt of the mum’s head away from the girl. The transition between childhood and adulthood often leads to a distancing between parents and their children. In the poem ‘Feliks Skrzynecki ‘ this idea is evident ‘as like a dumb prophet watched me pegging y tents further south of Hadrian’s Wall’. The simile, ‘like a dumb prophet’ and the metaphor ‘further south of Hadrian’s Wall’ emphasises the gap between Skrzynecki and his father because of different life experiences. Feliks is both dumb and prophetic as he portrays a certain lack of knowledge of the English language; whereas Skrzyneck i’s English grows and Feliks is powerless to speak up about his son’s movement away from him. He is prophetic as he can foresee that his son will come to value his heritage in later years at the expense of his dislocation from it in youth. The image ‘Home’ is like a story. Firstly, you look through the vector into the girl’s fantasy then your eyes are drawn towards the mother who is clearly at peace with her culture and third world. She has accepted her life, unlike her young daughter who is metaphorically represented reaching up for more than what she has. Then your eyes are drawn to the bottom of the picture where both the mum and daughter are being supported by their third world structure. This is a metaphor as they need their country; this is their ‘Home’. They are ‘citizens of the soil. ’ How to cite Hsc Belonging Peter Skrzynecki and Ben Heine, Essay examples

Solutions Manual free essay sample

Horizontal analysis examines how a particular item on a financial statement such as sales or cost of goods sold behaves over time. Vertical analysis involves analysis of items on an income statement or balance sheet for a single period. In vertical analysis of the income statement, all items are typically stated as a percentage of sales. In vertical analysis of the balance sheet, all items are typically stated as a percentage of total assets. By looking at trends, an analyst hopes to get some idea of whether a situation is improving, remaining the same, or deteriorating. Such analyses can provide insight into what is likely to happen in the future. Rather than looking at trends, an analyst may compare one company to another or to industry averages using common-size financial statements. 16-3Price-earnings ratios reflect investors’ expectations concerning future earnings. The higher the price-earnings ratio, the greater the growth in earnings investors expect. We will write a custom essay sample on Solutions Manual or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page For this reason, two companies might have the same current earnings and yet have quite different price-earnings ratios. By definition, a stock with current earnings of $4 and a price-earnings ratio of 20 would be selling for $80 per share. 16-4A rapidly growing tech company would probably have many opportunities to make investments at a rate of return higher than stockholders could earn in other investments. It would be better for the company to invest in such opportunities than to pay out dividends and thus one would expect the company to have a low dividend payout ratio. 16-5The dividend yield is the dividend per share divided by the market price per share. The other source of return on an investment in stock is increases in market value. Financial leverage results from borrowing funds at an interest rate that differs from the rate of return on assets acquired using those funds. If the rate of return on the assets is higher than the interest rate at which the funds were borrowed, financial leverage is positive and stockholders gain. If the return on the assets is lower than the interest rate, financial leverage is negative and the stockholders lose. 16-7If the company experiences big variations in net cash flows from operations, stockholders might be pleased that the company has no debt. In hard times, interest payments might be very difficult to meet. On the other hand, if investments within the company can earn a rate of return that exceeds the interest rate on debt, stockholders would get the benefits of positive leverage if the company took on debt. 16-8The market value of a share of common stock often exceeds the book value per share. Book value represents the cumulative effects on the balance sheet of past activities, evaluated using historical prices. The market value of the stock reflects investors’ expectations about the company’s future earnings. For most companies, market value exceeds book value because investors anticipate future earnings growth. 16-9A 2 to 1 current ratio might not be adequate for several reasons. First, the composition of the current assets may be heavily weighted toward slow-turning and difficult-to-liquidate inventory, or the inventory may contain large amounts of obsolete goods. Second, the receivables may be low quality, including large amounts of accounts that may be difficult to collect. The company’s major problem seems to be the increase in cost of goods sold, which increased from 58. 6% of sales last year to 62. 3% of sales this year. This suggests that the company is not passing the increases in costs of its products on to its customers. As a result, cost of goods sold as a percentage of sales has increased and gross margin has decreased. This change has been offset somewhat by reduction in administrative expenses as a percentage of sales. Note that administrative expenses decreased from 10. 3% to only 8. 9% of sales over the two years. However, this decrease was not enough to completely offset the increased cost of goods sold, so the company’s net income decreased as a percentage of sales this year. Exercise 16-2 (30 minutes) 1. Calculation of the gross margin percentage: 2. Calculation of the earnings per share: 3. Calculation of the price-earnings ratio: 4. Calculation of the dividend payout ratio: 5. Calculation of the dividend yield ratio: The most noticeable thing about the assets is that the accounts receivable have been increasing at a rapid rate—far outstripping the increase in sales. This disproportionate increase in receivables is probably the chief cause of the decrease in cash over the five-year period. The inventory seems to be growing at a well-balanced rate in comparison with sales. Liabilities: The current liabilities are growing more rapidly than the total current assets. The reason is probably traceable to the rapid buildup in receivables in that the company doesn’t have the cash needed to pay bills as they come due. Both of these rates of return are smaller than the return that the company is earning on its total assets; thus, the difference goes to the common stockholders. Exercise 16-7 (30 minutes) 1. Gross margin percentage: 2. Current ratio: 3. Acid-test ratio: 4. Debt-to-equity ratio: 5. Average collection period: Exercise 16-7 (continued) 6. Average sale period: 7. Times interest earned: 8. Book value per share: Exercise 16-8 (20 minutes) 1. Earnings per share: 2. Dividend payout ratio: 3. Dividend yield ratio: 4. Price-earnings ratio: Exercise 16-9 (20 minutes) 1. Return on total assets: 2. Both the current ratio and the acid-test ratio are well below the industry average and are trending downward. At the present rate, it will soon be impossible for the company to pay its bills as they come due. c. The drain on the cash account seems to be a result mostly of a large buildup in accounts receivable and inventory. Notice that the average age of the receivables has increased by five days since last year, and now is 10 days over the industry average. Many of the company’s customers are not taking their discounts because the average collection period is 28 days and collections terms are 2/10, n/30. This suggests financial weakness on the part of these customers, or sales to customers who are poor credit risks. Problem 16-12 (continued) d. The inventory turned only five times this year as compared to over six times last year. It takes nearly two weeks longer for the company to turn its inventory than the average for the industry (73 days as compared to 60 days for the industry). This suggests that inventory stocks are higher than they need to be. e. In the authors’ opinion, the loan should be approved only if the company gets its accounts receivable and inventory back under control. If the accounts receivable collection period is reduced to about 20 days, and if the inventory is pared down enough to reduce the turnover time to about 60 days, enough funds could be released to substantially improve the company’s cash position. Then a loan might not even be needed. Problem 16-13 (60 minutes) This Year Last Year 1. a. Net income $280,000 $196,000 Less preferred dividends 20,000 20,000 Net income remaining for common (a) $260,000 $176,000 Average number of common shares (b) 50,000 50,000 Earnings per share (a) ? (b) $5. 20 $3. 52 b. Dividends per share (a) $1. 80 $1. 50 If investors were willing to pay 12 times current earnings for Sabin’s stock, it would be selling for about $62. 40 per share (12 ? $5. 20), rather than for only $40 per share. Problem 16-13 (continued) This Year Last Year e. Total stockholders’ equity $1,600,000 $1,430,000 Less preferred stock 250,000 250,000 Common stockholders’ equity (a) $1,350,000 $1,180,000 Number of common shares outstanding (b) 50,000 50,000 Book value per share (a) ? (b) $27. 00 $23. 60 The market value is above book value for both years. However, this does not necessarily indicate that the stock is overpriced. The stock’s downside risk seems small because it is now selling for only 7. 7 times earnings to 12 times earnings for other companies in the industry. In addition, its earnings are strong and trending upward, and its return on common equity (20. 6%) is extremely good. Its return on total assets (12. 1%) compares well with that of the industry. The risk, of course, is whether the company can get its cash problem under control. Conceivably, the cash problem could worsen, leading to an eventual reduction in profits through inability to operate, a discontinuance of dividends, and a precipitous drop in the market price of the company’s stock. This does not seem likely, however, because the company has borrowing capacity available, and can easily control its cash problem through more careful management of accounts receivable and inventory. The client must understand, of course, that there is risk in the purchase of any stock; the risk seems well justified in this case because the upward potential of the stock is great if the company gets its problems under control. Net income before interest and income taxes (a) $1,560,000 $1,020,000 Interest expense (b) $360,000 $300,000 Times interest earned (a) ? (b) 4. 3 3. 4 4. Both net income and sales are up from last year. The return on total assets has improved from 5. 1% to 6. 8%, and the return on common equity is up from 4. 9% to 9. 2%. But this is the only bright spot. Virtually all other ratios are below what is typical of the industry, and, more important, they are trending downward. The deterioration in the gross margin percentage, while not large, is worrisome. Sales and inventories have increased substantially. Ordinarily, this should result in an improvement in the gross margin percentage due to fixed costs being spread over a greater number of units. However, the gross margin percentage has declined. Notice particularly that the average collection period has lengthened to 52 days—about three weeks over the industry average. One wonders if the increase in sales was obtained at least in part by extending credit to high-risk customers. Notice also that the debt-to-equity ratio is rising rapidly. If the $3,000,000 loan is granted, the ratio will rise further to 1. 09. What the company probably needs is more equity—not more debt. The company’s current position has declined substantially between the two years. Cash this year represents only 5. 6% of total assets, whereas it represented 10. 5% last year (cash + marketable securities). In addition, both accounts receivable and inventory are up from last year, which helps to explain the decrease in the cash account. The company is building inventories, but not collecting from customers. (See Problem 16-14 for a ratio analysis of the current assets. ) Apparently a part of the financing required to build inventories was supplied by short-term creditors, as evidenced by the increase in current liabilities. Looking at the income statement, as noted in the solution to the preceding problem there has been a slight deterioration in the gross margin percentage. Ordinarily, the increase in sales (and in inventories) should have resulted in an increase in the gross margin percentage because fixed manufacturing costs would be spread across more units. Note that the selling and administrative expenses are down as a percentage of sales—possibly because many of them are likely to be fixed. Problem 16-16 (45 minutes) Effect on Ratio Reason for Increase, Decrease, or No Effect 1. Decrease Declaring a cash dividend will increase current liabilities, but have no effect on current assets. Therefore, the current ratio will decrease. 2. Increase A sale of inventory on account will increase the quick assets (cash, accounts receivable, marketable securities) but have no effect on the current liabilities. For this reason, the acid-test ratio will increase. The same effect would result regardless of whether the inventory was sold at cost, at a profit, or at a loss. That is, the acid-test ratio would increase in all cases; the only difference would be the amount of the increase. 3. Increase The interest rate on the bonds is only 8%. Since the company’s assets earn at a rate of return of 10%, positive leverage would come into effect, increasing the return to the common stockholders. 4. Decrease A decrease in net income would mean less income available to cover interest payments. Therefore, the times-interest-earned ratio would decrease. 5. Increase Payment of a previously declared cash dividend will reduce both current assets and current liabilities by the same amount. An equal reduction in both current assets and current liabilities will always result in an increase in the current ratio, so long as the current assets exceed the current liabilities. No Effect The dividend payout ratio is a function of the dividends paid per share in relation to the earnings per share. Changes in the market price of a stock have no effect on this ratio. Problem 16-16 (continued) Effect on Ratio Reason for Increase, Decrease, or No Effect 7. Increase A write-off of inventory will reduce the inventory balance, thereby increasing the turnover in relation to a given level of sales. 8. Decrease Sale of inventory at a profit will increase the assets of a company. The increase in assets will be reflected in an increase in retained earnings, which is part of stockholders’ equity. An increase in stockholders’ equity will result in a decrease in the ratio of assets provided by creditors as compared to assets provided by owners. 9. Decrease Extended credit terms for customers means that customers on the average will be taking longer to pay their bills. As a result, the accounts receivable will â€Å"turn over,† or be collected, less frequently during a given year. 10. Decrease A common stock dividend will result in a greater number of shares outstanding, with no change in the underlying assets. The result will be a decrease in the book value per share. No Effect Book value per share is dependent on historical costs of already completed transactions as reflected on a company’s balance sheet. It is not affected by current market prices for the company’s stock. 12. No Effect Payments on account reduce cash and accounts payable by equal amounts; thus, the net amount of working capital is not affected. 13. Decrease The stock dividend will increase the number of common shares outstanding, thereby reducing the earnings per share. Problem 16-16 (continued) Effect on Ratio Reason for Increase. Payments to creditors will reduce the total liabilities of a company, thereby decreasing the ratio of total debt to total equity. 15. Decrease A purchase of inventory on account will increase current liabilities, but will not increase the quick assets (cash, accounts receivable, marketable securities). Therefore, the ratio of quick assets to current liabilities will decrease. 16. No Effect Write-off of an uncollectible account against the Allowance for Bad Debts will have no effect on total current assets. For this reason, the current ratio will remain unchanged. The price-earnings ratio is obtained by dividing the market price per share by the earnings per share. If the earnings per share remains unchanged, and the market price goes up, then the price-earnings ratio will increase. 18. Decrease The dividend yield ratio is obtained by dividing the dividend per share by the market price per share. If the dividend per share remains unchanged and the market price goes up, then the yield will decrease. Problem 16-17 (30 minutes) a. It is becoming more difficult for the company to pay its bills as they come due. Although the current ratio has improved over the three years, the acid-test ratio is down. Also notice that the accounts receivable and inventory are both turning more slowly, indicating that an increasing portion of the current assets is being made up of these items, from which bills cannot be paid. b. Customers are paying their bills more slowly in Year 3 than in Year 1. This is evidenced by the decline in accounts receivable turnover. c. The total of accounts receivable is increasing. This is evidenced both by a slowdown in turnover and in an increase in total sales. d. The level of inventory undoubtedly is increasing. Notice that the inventory turnover is decreasing. Even if sales (and cost of goods sold) just remained constant, this would be evidence of a larger average inventory on hand. However, sales are not constant, but rather are increasing. With sales increasing (and undoubtedly cost of goods sold also increasing), the average level of inventory must be increasing as well to service the larger volume of sales. e. The market price is going down. The dividends paid per share over the three-year period are unchanged, but the dividend yield is going up. Therefore, the market price per share of stock must be decreasing. f. The amount of earnings per share is increasing. Again, the dividends paid per share have remained constant. However, the dividend payout ratio is decreasing. In order for the dividend payout ratio to be decreasing, the earnings per share must be increasing. g. The price-earnings ratio is going down. If the market price of the stock is going down [see Part (e) above], and the earnings per share are going up [see Part (f) above], then the price-earnings ratio must be decreasing. h. In Year 1 and in Year 2 there was negative leverage because in both years the return on total assets exceeded the return on common equity.