A modified Du Pont chart shows how return on equity is affected by: O profit margin on sales total assets turnover leverage all of the above none of the above Question 8 (4 points) Basic earning power: O measures the rate of return on the stockholders investment measures the return on the firms assets after interest and taxes. shows the raw earnings power of the firms assets before the influence of taxes and leverage none of the above are correct Question 94 points) A large liquidity premium: O is required for assets that can be converted into cash on short notice at a is required for assets that cannot be converted into cash on short notice at a reasonable price O is required for assets with high default risk is required for assets when inflation was high in the past