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Check all that apply 9,600,000 Gross profit margin (%) Operating profit margin (%) Net profit margin (%) Return on equity (%) 40 24,000,000 24,000,000 3,600,000
Check all that apply
9,600,000 Gross profit margin (%) Operating profit margin (%) Net profit margin (%) Return on equity (%) 40 24,000,000 24,000,000 3,600,000 1 15 1,759,680 / 24,000,000 73 1,759,680 / Asset management ratio 5,040,000 35 Total asset turnover 24,000,000 14.400,000 Financing ratios 2 Equity multiplier 14,400,000 7 5,040,000 3 LANDON: I see what I did wrong in my computations. Thanks for reviewing these calculations with me. You saved me from a lot of embarrassment! Amelia would have been very disappointed in me if I had showed her my original work. So, now let's switch topics and identify general strategies that could be used to positively affect Cepeus's ROE. YOU: OK, so given your knowledge of the component ratios used in the DuPont equation, which of the following strategies should improve the company's ROE? Check all that apply. Increase the interest rate on its notes payable or long-term debt obligations because it will reduce the company's net profit margin. Increase the efficiency of its assets so that it generates more sales with each dollar of asset investment and increases the company's total asset turnover. O Decrease the amount of debt financing used by the company, which will decrease the total asset turnover ratio. Reduce the company's operating expenses, its cost of goods sold, and/or the interest rate on its borrowed funds because this will increase earchStep by Step Solution
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