a. The firm you work for has lower ROE than that of the industry average. You were tasks to figure out why it is. You find that the firm's total asset turnover and equity multiplier are in line with those of the industry. Which of the following is a possible solution for your firm to bring its ROE up to that of the industry average? Issue new stock and use the proceeds to pay down debt. This will decrease the interest payment and increase net income. b. Pay off some debt with excess cash. This will decrease the interest payment and increase net income. Give better credit terms to customers to generate more sales. Generating more sales will lead to higher profit margin. d. Negotiate with suppliers to lower costs. Lowering operating costs will lead to higher profit margin. e. Borrow money to increase the equity multiplier. Higher equity multiplier will increase ROE. c. Which of the following statements is CORRECT about ratio analysis? a. Ratio analysis is used for internal purposes only. It helps the executives see the trend for their firm over time and how the firm compares to the industry. b. Ratio analysis is more important than estimating future projections of the firm because future estimations are uncertain while ratio analysis is accurate. c. Liquidity ratios are the most important of the five categories of ratios we studied in class. d. While ratio analysis is an important tool, comparisons of ratios may be misleading due to concerns such as different accounting practices. e. Comparisons of ratios between companies are impossible to interpret because no two companies are in the exact same industry or have the exact same customer base