QUESTION 3 Which of the following statements is true? O A. Profit margin is calculated by dividing total assets by sales. O B. Return on Equity rises if equity increases and net income remain constant. O C. A 10% increase in cash will lead to a greater Cash Ratio OD. The current ratio increases if the current liabilities increase QUESTION 5 Which of the following statements is true? O A. The DuPont Identity is used to calculate Return on Assets. O B. A company can imporve their P/E ratio by improving their EPS. O C. A Market to Book ratio greater than 1 always means the stock is undervalued. O D. All of the statements are false. QUESTION 11 Which of the following statements is true? O A. Companies look for investments with payback periods that are larger than their maximum accepted payback period B. An investment with a profatibility index less than 1 is profitable and desirable O C. A projected is accepted if the IRR is less than the cost of capital O D. None of the above are true