QUESTION 2 1 points Save Answer The extended Du Pont equation, a. k. a. the 3 components ROE decomposition equation, (i.e.ROE = (profit margin)x(total asset turnover)x(equity multiplier) is used to compute the firm's ROE, as the equation states. decompose the firm's ROE into sub-components, for a better understanding of the firm's financial health. determine if the firms is liquid compute the firm's ROA, as the equation states. QUESTION 3 1 points Save Answer Bank A charges 16% APR on auto loans with monthly compounding. What is the Effective Annual Interest Rate (EAR)? 16%, since EAR = APR for monthly compounding 13.3% 1.33% 17.23% 18.12% insufficient information to answer this question