If 1 remember correctlv tha DuPont equation breaks down our ROE into three comnnnant -atios: the , the total asset turnover ratio, and the And, according to my understanding of the Dupont equation and its calculation of ROE, the three ratios provide insights into the company's effectiveness in using the company's assets, and Now, let's see your notes with your ratios, and then we can talk about possible strategies that will improve the ratios. I'm going to check the box to the side of your calculated valve if your calculation is correct and leave it unchecked if your calculation is incorrect. Canis Major Veterinary Supplies Inc. DuPont Analysis MADISON: OK, it looks like Ive got a couple of incorrect values, so show me your calculations, and then we can talk strategies for improvement. You: I've just made rough calculations, so let me complete this table by inputting the components of each ratio and its value: Do not round intermediate calculations and round your final answers up to two decimals. Canis Major Veterinary Supplies Inc. DuPont Analysis MADISON: 1 see what I did wrong in my computations. Thanks for reviewing these calculations with me. You saved me from a lot of embarrassment! Xavier would have been very disappointed in me if I had showed him my original work: So, now let's switch topics and identify general strategies that could be used to positively affect Canis Major's ROE. YOU: OX, so given your knowledge of the component ratios used in the Dupont equation, which of the following strategles should improve the company's RoE? Cheok all that applys Increase the efficiency of its assets so that it generates more sales with each doliar of abset investment and increases the company's total assets turnover. Increase the cost and amount of assets necessary to generate each dollar of sales beceuse it will incresse the company's total assets turnover. Decrease the company's use of debt capital becouse it will decrease the equity multiptien: Increase the interest rate on its notes payable or long-term debt obligations beceuse if: wili reduce the company's net profit margin