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LANDON: 1 see what 1 did wrong in my computations. Thanks for reviewing these calculations with me. You saved me from a lot of embarrassmentl

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LANDON: 1 see what 1 did wrong in my computations. Thanks for reviewing these calculations with me. You saved me from a lot of embarrassmentl 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 efficiency of its assets so that it generates more sales with each dollar of asset investment and increases the company's total assets turnover: Use more equity financing in its capital structure, which will increase the equity multiplier. Decrease the company's use of debt capital because it will decrease the equity multiplier. Increase the firm's bottom-line profitability for the same volume of sales, which will increase the company's net profit margin. LANDON: I think I understand now. Thanks for taking the time to go over this with me; and let me know when 1 can return the favor

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