ASHLEY: I see what I did wrong in my computations. Thanks for reviewing these calculations with me$.$ You saved me from a lot of

embarrassment! Mikel would have been very disappointed in me if I had showed him my original work.

So$,$ now let's switch topics and identify general strategies that could be used to positively affect Pavo's ROE.

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.

Use more debt financing in its capital structure and increase the equity multiplier.

Decrease the amount of debt financing used by the company, which will decrease the total assets turnover ratio.

Decrease the company's use of debt capital because it will decrease the equity multiplier.

Increase the firm's bottom$-$line profitability for the same volume of sales, which will increase the company's net profit margin.