2. Jommer The Doug and Bob Corp. is trying to decide how much debt it should use in relation to its outstanding equity. The choosing of how much debt and equity to use is referred to as the firm's: total assets and liabilities. b) capital budgeting. capital structure.** working capital. financing mix. You have calculated the following ratios for Elsinore Corp and its industry. Equity Multiplier Elsinore Industry Average 2.2 2.5 Net Profit Margin 2.8% 3.0% Total Asset Turnover 4.2 4.0 Debt Costs 5.2% 5.3% Basic Earning Power 6.2% 6.0% a) b) From this information, what statement best describes the weakness(es) of Elsinore? The firm is not controlling their expenses. The firm is using too much debt and not controlling their expenses. c) The only problem is the firm needs to do a better job utilizing their assets. d) e) The firm is not controlling their expenses, they are using less debt and this is causing their profitability to be less than the industry.** The firm is not using as much debt and it is hurting their profitability.