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Unformatted text preview: d. A decrease in the debt ratio. Which of the following ratios is equal to profit margin times total asset turnover? Wrong a. basic earning power b. return on assets c. return on equity d. equity multiplier What are the operational component(s) of the DuPont Equation? a. profit margin b. total asset turnover c. equity multiplier d. Both A and B Which of the following would increase a company's return on equity (all else constant)? a. An increase in the debt ratio. b. A decrease in the debt ratio. c. A decrease in the profit margin d. A decrease in total asset turnover. Which ratio(s) were better for AT&T vs. Verizon in both 2007 and 2006? a. only the debt ratio b. only the times-interest-earned ratio c. the debt and time-interest-earned ratios d. none of AT&T debt management ratios were better than Verizon both years....
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- Spring '10