1. The lecture says that some ratios typically are better when they are higher and some of the ratios are better when they are lower. Pick a ratio for which a lower number typically would be preferred and describe a situation, in which a higher number for that ratio would be preferred, OR pick a ratio for which a higher number typically would be preferred and describe a situation in which a lower number for that ratio would be preferred.
2. Barnes Corp's total assets at the end of last year were $415,000,000 and its net income after taxes was $17,750,000. What was its return on total assets?
3. Between December 31, 2016 and December 31, 2017, ROE at Bobcat Industries decreased even though sales increased. Using the DuPont Identity, explain what else could have happened to cause this