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Please use the following financial statements for cuestions 1 and 2 . 1. Please calculate Starbucks' Deby Ratio for each year. Do we want this

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Please use the following financial statements for cuestions 1 and 2 . 1. Please calculate Starbucks' Deby Ratio for each year. Do we want this ratio higher or lower? Did the company's performance improve or decline over that period? 2. Please compare Starbuclis' debt ratio in 2007 to the industry average which is given below for each meanure. Was Starbucks doing better compared to the industry? 3. ABC Com.'s equity multiplier is 1.25. What is its debt ratio? 4. Easy Corp.'s return on assets measure is 0.20 (2095. Its return on equity meastare is 0.25 (2596). What is the firm's equity multiplier? 5. Decorative Paintings has total debt of 569,000 , total ecaity of 5445,000 , and a refurn on equity of 10 percent. What is the return on assets? 6. If equaty maltiplier for a firm is 4 , what is the debt ratio for that fimm? 7. measures the percentage of each sales dollar remaining after all costs and expenses, including interest, taxes, and preferred stock dividends, have been deducted. A) Net profit margin B) Operating profit margin C) Gross profit margin D) Earnings available to common shareholders 8. measures the return earned on the common stockholders' investment in the firm. A) Net profit margin B) Price/eamings ratio C) Return on equity D) Return on total assets 9. A firm with sales of $1,000,000, net profits after taxes of $30,000, total assets of $1,500,000, and common stockholders' investment of $750,000 has a return on equity of A) 20 percent B) 15 percent C) 3 percent D) 4 percent D) 4 percent 10) The DuPont formula allows a firm to break down its return into the net profit margin, which measures the furm's profitability on sales, and its total asset turnover, which indicates how efficiently the firm has used its assets to generate sales. TRUE FAL.SE

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