You have calculated the following ratios for Seacrest Corp and its industry. Seacrest Industry Average Equity Multiplier 3.5 2.5 Net Profit Margin 2.0% 3.0% Total Asset Turnover 2.0 2.0 Debt Costs 7.9% 6.0% Basic Earning Power 7.0% 7.0% From this information, what best describes the weakness of Seacrest? The firm is not controlling their expenses and not utilizing their assets. The only problem is the firm needs to do a better job controlling expenses. The firm is using too much debt and not controlling their expenses. There is no weakness because the firm is doing better than the industry based on the Du pont analysis. The firm is using more debt than the industry but it is not hurting their profitability