1. According to the DuPont Identity, if a firm's return on assets is the same as the firm's return on equity then the firm:

May have short-term, but not long-term debt.

Is using its assets as efficiently as possible.

Has an equity multiplier of 1.0.

Has a debt-equity ratio of 1.0.

Has no net working capital

2. You would like to retire 20 years from today. You’ve calculated that you will need to have the current equivalent of $1,500,000 in your investment account at that time. You expect inflation to average 2% per year for the next 20 years. If your investments earn 5% APR (compounded monthly), how much do you have to invest each month, starting next month, for 20 years (the same amount each month) in nominal terms to meet your retirement goal?

$3649

$3,851

$5,700

None of the choices is correct

$5,423