1. Describe how profitability measures are used to determine how efficiently the company manages its operations. (150 words no plagiarism)
2. Explain how the DuPont ratio is calculated and used to measure the level of debt financing. (minimum 150 words and no plagiarism)
3. Assume that the risk-free rate is 3% and the expected return on the market is 12%. What is the required rate of return on a stock with a beta of 1.2? Round your answer to two decimal places.