PTM Bank has a Return on Equity (ROE) of 16% and a Return on Assets (ROA) of 6%. FIM Bank has a Return on Equity (ROE) of 18% and a Return on Assets (ROA) of 4%. Based on this information, which of the following is CORRECT?Group of answer choicesPTM Bank has a profit margin of 28% and an Asset Utilisation Ratio of 10.71%FIM Bank has a profit margin of 27% and an Asset Utilisation Ratio of 14.81%FIM Bank has an equity multiplier of 6.67PTM Bank  has a profit margin of 17.00% and an Asset Utilisation Ratio of 27.78%

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

Which ratio is not one of the three ratios that multiply together to produce the return on equity ratio?Total asset turnoverNet profit marginFinancial leverageOperating profit margin

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

Which of the following is an asset utilization ratio?Multiple Choicereturn on assetsreceivables turnoverreturn on equitycurrent ratio

If a business has a return on equity ratio of 25%, then this meansMultiple Choicethe business is generating $0.75 profit on each dollar it spent on inventory.total liabilities must be 25% of the value of the business.the owners made 25% profit from each dollar invested in the company.the return on equity ratio does not represent any of these answers.the business owes 25% of its profits to its employees.