The Du Pont identity can be used to help managers answer which of the following questions related to a firm's operations?

The Du Pont identity can be used to help managers answer which of the following questions related to a firm's operations? I. How many sales dollars has the firm generated per each dollar of assets? II. How many dollars of assets has a firm acquired per each dollar in shareholders' equity? III. How much net profit is a firm generating per dollar of sales? IV. Does the firm have the ability to meet its debt obligations in a timely manner?    A.  I and III only B.  II and IV only C.  I, II, and III only D.  II, III and IV only E.  I, II, III, and IV

42.

A firm currently has $600 in debt for every $1,000 in equity. Assume the firm uses some of its cash to decrease its debt while maintaining its current equity and net income. Which one of the following will decrease as a result of this action?    A.  equity multiplier B.  total asset turnover C.  profit margin D.  return on assets E.  return on equity

43.

Which one of the following statements is correct?    A.  Book values should always be given precedence over market values. B.  Financial statements are frequently used as the basis for performance evaluations. C.  Historical information provides no value to someone who is predicting future performance. D.  Potential lenders place little value on financial statement information. E.  Reviewing financial information over time has very limited value.

44.

It is easier to evaluate a firm using financial statements when the firm:    A.  is a conglomerate. B.  has recently merged with its largest competitor. C.  uses the same accounting procedures as other firms in the industry. D.  has a different fiscal year than other firms in the industry. E.  tends to have many one-time events such as asset sales and property acquisitions.