8. The lower the degree of financial leverage employed by a firm is, the: a. Lower is the number of outstanding shares of stock. b. Lower is the probability that the firm could default. c. Higher is the amount of debt incurred d. Higher debt a firm has per dollar of total assets. 9. High Mountain Foods has an equity multiplier of 1.72. a total asset turnover of 1.16, and a profit margin of 4.3 percent. What is the return on equity? a. 8.98 percent b. 11.94 percent c. 12.96 percent d. 14.38 percent 10. Lancaster Toys has a profit margin of 5.1 percent, a total asset turnover of 1.84, and a return on equity of 16.2 percent. What is the debt-equity ratio? a. 42 b. .73 c. .81 d. .64