All other things being equal, according to the Du Pont model, if a firm’s Return on Assets (ROA)  has been decreasing but it’s Asset Turnover has been increasing, then its Profit Margin has been:Group of answer choicesIncreasingUnable to determine based on the information givenDecreasingRemaining the same

All other things being equal, according to the Du Pont model, if a firm’s Return on Equity (ROE) has been increasing and it’s Leverage has been decreasing, then its Return on Assets (ROA) has been:Group of answer choicesIncreasingDecreasingUnable to determine based on the information givenRemaining the same

Question 3Assume a firm earns net income of $10,000 with total assets of $200,000 - half of which is debt - and has 20,000 shares outstanding. Based on this information, its EPS (earnings per share), ROA (return on assets) and ROE (return on equity) are respectively:1 point$2.00; 5%; 10%$2.00; 10%; 5%$0.50; 5%; 5%$0.50; 5%; 10%None of the above

Companies with a low ROA usually have more assets involved in generating profit, while companies with a high ROA have fewer assets

Profit has often been defined by specialists as the difference between a company’s revenue and                                .Group of answer choicesexpensesinvestmentsassetsprice margins

The return on total assets assesses:Group of answer choiceshow efficiently a business has used its economic resourcesthe return for ownersthe mix of debt and equity in a businesshow many assets a business needs to replace