1. Bell Inc. knows its ROA=4.5% and its debt ratio equal to 45%, what ROE is Bell Inc. generating? (3pts) 2. If a firm knows its ROA= 10%, and it has a target ROE=15%. A. What would be the equity multiplier for this firm? (2pts) B. What would bet the debt ratio required? (2pts) 3. The board Lowe Co. has a debt ratio of 0.5, total asset turnover of 0.25 and a profit margin of 10%. of directors is unhappy with current return on equity (ROE). They think it could be doubled. This should be accomplished by a. increasing the profit margin to 12% b. increasing the use of debt c. total asset turnover appears to be incapable of improvement What new debt ratio along with 12% profit margin will double their ROE? (3pts)