Question: Now, let's see your notes with your ratios, and ben we can talk about possible strategies that will improve the ratics. in the drupsown lists



Now, let's see your notes with your ratios, and ben we can talk about possible strategies that will improve the ratics. in the drupsown lists next to your values Im going to select comect if your calculetion is correct and incorrect if your calculation is incorrect. Note: Do not round intermediate caloulations. Round ninal answers to the nearest whole number. AKIRA: I see what I did wrong in my computations. Thanks for reviewing these calculations with me. You saved me from a lot of embarressment! Emma would have been very disappointed in me if I had showed her my original work. So, now let's switch topics and identify generd strategies that could be used to positively affed Canis Major's ROE. YOU: OK, so given your knowiedge of the component ratios used in the DuPont equation, which of the following strategies =1 lould improve the compary's ROE? Oicck ell that apply. Use more debt financing in its cepital structure and increase the equity multiplier. Increse the efficiency of its assets so that it generate more sales with eadi dollar of asset investment and increase the canpany"s total asset turnover. Reduce Ule campany's operaling expenses, its cost of goods sald, and/or the interest rate on its borrowed funds teecause this Will inciease Ule compeny's net profle mergin. Increase the ferm's bottom-line proncability for the same volume of sales, wilich wal increase the company's net pruntit margin. AKIRA: I think I understend now. Thenks for Laking tie time to go over this with me, and let me know when 1 can return the favor
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