the total asset If 1 remember correcly, the DuPont equation breaks down our ROE into three component ratios: the turnover 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 CHLOE, OK, it looks like tive got a couple of incorrect values, so show me your calculations, and then we can talk strategies for improvement: You: 1've just made rough calculations, so let me compiete this table by inputting the components of each ratio and its value: Do not round intermediate calculations and round your final answers up to two decimals. Do not round intermediate calculations and round your final answers up to two decimals. Hydra Cosmetics Inc. DuPont Analysis 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 interest rate on its notes payable or long-term debt obligations because it will reduce the company's net profit margin. Reduce the company's operating expenses, its cost of goods sold, and/or the interest rate on its borrowed funds because this will increase the company's net profit margin. Use more debt financing in its capital structure and increase the equity multiplier. Use more equity financing in its capital structure, which will increase the equity multiplier. CHLOE: 1 think 1 understand now. Thanks for taking the time to 90 over this with me, and let me know when I can return the favor: the total asset If 1 remember correcly, the DuPont equation breaks down our ROE into three component ratios: the turnover 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 CHLOE, OK, it looks like tive got a couple of incorrect values, so show me your calculations, and then we can talk strategies for improvement: You: 1've just made rough calculations, so let me compiete this table by inputting the components of each ratio and its value: Do not round intermediate calculations and round your final answers up to two decimals. Do not round intermediate calculations and round your final answers up to two decimals. Hydra Cosmetics Inc. DuPont Analysis 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 interest rate on its notes payable or long-term debt obligations because it will reduce the company's net profit margin. Reduce the company's operating expenses, its cost of goods sold, and/or the interest rate on its borrowed funds because this will increase the company's net profit margin. Use more debt financing in its capital structure and increase the equity multiplier. Use more equity financing in its capital structure, which will increase the equity multiplier. CHLOE: 1 think 1 understand now. Thanks for taking the time to 90 over this with me, and let me know when I can return the favor
