How'd I do?

1. Give the DuPont model formula for computing (a)tate of them on total anses (ROA) and () rate of return on conmonochhoeun (ROE). Then another gunstion but the roof tum computation Explain the meaning of the componen driver ratios in the computation of ROA 2. What impact does the leverage ratio have on ROA? 3 Under what cacumutances WAT ROE be higher man ROA? Under what circumtances would not be lower than ROA? Begin by selecting the DuPont model formula for computing the rate of mtum on total act (RON) Net profit marginal Asset turnover RDA Now select the DuPont model formula Sur computing the rate of selum or common stockholders' equly (ROE) Leverage ratio ROE Return on asset (ROA) 1. Explain the meaning of the component over ratios in the computation of ROA Select the component driver ratios in the computation of ROA, the formula for each componenter ratio and what each rato measures Aised Ave average Ratio Formule Measure of Met profit margin Niemcome the sales Operational effectiveness Reset Ramover Note total assets Eficiency in the use of a minus preferred dividends any 2. What impact does the leverage ratio have on ROA? The leverage ratio measures efficiency in the use of assets When multiplied by ROA. leverage magnifies the return to make ROE targer 3. Under what runs wil ROE e lugher than ROA? Under what circumstances would ROE be lower than ROA? W ROA is positive and the leverage to ed one the leverage makes ROE more positive RCA I gative, and the leverage ratio on the vergemake ROE more negative 1. Give the DuPont model formula for computing (a)tate of them on total anses (ROA) and () rate of return on conmonochhoeun (ROE). Then another gunstion but the roof tum computation Explain the meaning of the componen driver ratios in the computation of ROA 2. What impact does the leverage ratio have on ROA? 3 Under what cacumutances WAT ROE be higher man ROA? Under what circumtances would not be lower than ROA? Begin by selecting the DuPont model formula for computing the rate of mtum on total act (RON) Net profit marginal Asset turnover RDA Now select the DuPont model formula Sur computing the rate of selum or common stockholders' equly (ROE) Leverage ratio ROE Return on asset (ROA) 1. Explain the meaning of the component over ratios in the computation of ROA Select the component driver ratios in the computation of ROA, the formula for each componenter ratio and what each rato measures Aised Ave average Ratio Formule Measure of Met profit margin Niemcome the sales Operational effectiveness Reset Ramover Note total assets Eficiency in the use of a minus preferred dividends any 2. What impact does the leverage ratio have on ROA? The leverage ratio measures efficiency in the use of assets When multiplied by ROA. leverage magnifies the return to make ROE targer 3. Under what runs wil ROE e lugher than ROA? Under what circumstances would ROE be lower than ROA? W ROA is positive and the leverage to ed one the leverage makes ROE more positive RCA I gative, and the leverage ratio on the vergemake ROE more negative