1-Higher the debt ratio, more the financial leverage a firm has and thus, the greater will be its risk and return.
True or false
2-Gross profit margin measures the percentage of each sales dollar left after a firm has paid for its goods and operating expenses.
True or false
3-Return on total assets (ROA) measures the overall effectiveness of management in generating profits with its available assets.
True or false
4-The financial leverage multiplier is the ratio of the firm's total assets to stockholders' equity.
True or false
5-The DuPont formula allows a firm to break down its return into the net profit margin, which measures the firm's profitability on sales, and its total asset turnover, which indicates how efficiently the firm has used its assets to generate sales.
True or false