1. Explain the benefits of decomposing the ROE into a profitability, efficiency and financial leverage measure. Basically, the idea behind the DuPont identity. 2. Ideally you would like ROE>ROA. Explain the reasoning behind this relation. 3. If Healthy Farms, LLC. has an equity multiplier of 1.50, total asset turnover of 1.10 and a profit margin of 5%, what is the ROE? 4. AgEcon, Farms, has a profit margin of 3%, total asset turnover of 1.25 and ROE of 15.0%. What is the firm's debt - to - equity ratio