1. What is net working capital ? Why a low value for this number might be considered Undesirable? 2. If you were given a choice of investing in an account that paid quarterly interest and one that paid monthly interest, which one should you choose if they both off are the same stated interest rate and why? 3. DuPont Equation: Lemmon Enterprises has a total asset turnover of 4.2 and a net profit margin of 9.5%. If its equity multiplier is 1.70, what is the ROE for Lemmon Enterprises? LO 4

1. What is net working capital ? Why a low value for this number might be considered Undesirable? 2. If you were given a choice of investing in an account that paid quarterly interest and one that paid monthly interest, which one should you choose if they both off are the same stated interest rate and why? 3. DuPont Equation: Lemmon Enterprises has a total asset turnover of 4.2 and a net profit margin of 9.5%. If its equity multiplier is 1.70, what is the ROE for Lemmon Enterprises? LO 4

1. What is net working capital ? Why a low value for this number might be considered Undesirable? 2. If you were given a choice of investing in an account that paid quarterly interest and one that paid monthly interest, which one should you choose if they both off are the same stated interest rate and why? 3. DuPont Equation: Lemmon Enterprises has a total asset turnover of 4.2 and a net profit margin of 9.5%. If its equity multiplier is 1.70, what is the ROE for Lemmon Enterprises? LO 4