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According to the Du Pont identity, return on equity (ROE) can be expressed as the product of three ratios, which does NOT include a. Equity

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According to the Du Pont identity, return on equity (ROE) can be expressed as the product of three ratios, which does NOT include a. Equity multiplier. b. Total asset turnover. c. Price-earning ratio. d. Profit margin. 9. Centauri Corp. has profit margin of 12.5%, total assets of $480 million, total debt of $230 million, and sales of $400 million. The net income is __________ and the ROE is __________. $50 million: 20.0%. $50 million: 22.5%. $60 million: 22.5%. $60 million: 25.0%. 10. Narn Corp. has a total debt ratio of 0.60. Its debt-equity ratio is _________ and equity multiplier is ___________. 1.25: 2.25 1.50;2.25 1.50: 2.50 1.60: 2.50 1.60: 2.60 11. Earth Alliance Corp. has a profit margin of 10%, total asset turnover of 1.50, and ROE of 24%, so its debt-equity ratio should be ____. 0.60 0.80 1.20 1.60 2.00 12. Vree, Inc. has net working capital of $60 million, current liabilities of $40 million, and inventories of $20 million. The current ratio is ___________ and the quick ratio is ____. 1.50 times: 1.00 times. 1.50 times: 2.00 times. 2.50 times;1.00 times. 2.50 times: 2.00 times

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