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. A. Increase the interest rate on its notes payable or long-term debt obligations because it will reduce the company's net profit margin. B. 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. C. Increase the firm's bottom-line profitability for the same volume of sales, which will increase the company's net profit margin. D. Use more debt financing in its capital structure and increase the equity multiplier.

The simple model of finacnial planning assumes which of thr following: Only assest are expected to increase the same rate as the sales projection  The sales projextion is the inly thing expected to increase Assets liabilities equity and expenses are projected to increase at the same rate as the sales projections

I am currently working on a study guide and came across the following question.  Which of the following statements correctly reflects the effects of granting credit to customers? a) total revenues may increase if both the quantity sold and the price per unit increase when credit is granted b) a firm's cash cycle generally increases if credit is granted, all else equal c) both the cost of default and the cost of discounts must be considered before granting credit d) a firm may have to increase its borrowing if it decides to grant credit to its new customers e) all of the above   My professor stated that the answer is all of the above, but after going through the readings and resources provided I could not find a way to understand how each answer is considered to be correct. I also e-mailed my professor and am waiting for a response, so I decided to post my question here as well.

If we hold all other factors the same, an increase in interest rates will: a. Decrease the present value of a stream of constant payments we expect to receive. b. Increase the present value of a stream of constant payments we expect to receive. c. Decrease the interest revenue that a company will earn on its funds that it holds in its interest-bearing checking account. d. No impact on how much a company should be willing to pay for factory equipment that is expected to significantly reduce the factory electricity costs.