If I remember correctly, the DuPont equation breaks down our return on equity (ROE) into three component ratios: the the 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. In the following table, select whether each of the ratios is correct or incorrect. Canis Major Veterinary Supplies Inc.DuPont Analsorir MADISON: OK, it looks like I've 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: MADISON: I 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 him showed 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: 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. Use more debt financing in its capital structure and increase the equity multiplier: Increase the efficiency of its assets so that it generates more sales with each dollar of asset investment and increases the company's tota assets turnover. Increase the interest rate on its notes payable or long-term debt obligations because it will reduce the company's net profit margin. Decrease the amount of debt financing used by the company, which will decrease the total assets turnover ratio. If I remember correctly, the DuPont equation breaks down our return on equity (ROE) into three component ratios: the the 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. In the following table, select whether each of the ratios is correct or incorrect. Canis Major Veterinary Supplies Inc.DuPont Analsorir MADISON: OK, it looks like I've 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: MADISON: I 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 him showed 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: 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. Use more debt financing in its capital structure and increase the equity multiplier: Increase the efficiency of its assets so that it generates more sales with each dollar of asset investment and increases the company's tota assets turnover. Increase the interest rate on its notes payable or long-term debt obligations because it will reduce the company's net profit margin. Decrease the amount of debt financing used by the company, which will decrease the total assets turnover ratio
