Given your knowledge of the component ratios used in the DuPont equation, which of the following strategies should improve the companys ROE? Check all that apply.

a) Reduce the companys operating expenses, its cost of goods sold, and/or the interest rate on its borrowed funds because this will increase the companys net profit margin.

b) Decrease the companys use of debt capital because it will decrease the equity multiplier.

c) Decrease the amount of debt financing used by the company, which will decrease the total assets turnover ratio.

d) Use more equity financing in its capital structure, which will increase the equity multiplier.