3-8 Debt management: Do we have the right mix of debt and equity? Profitability: Do sales prices exceed unit costs, and are sales high enough as reflected in PM, ROE, and ROA? they see as reflected in PlE and Me w Market value: Do investors like wha ratios? Copy right C 2002 Harcourt, Inc All rights reserved3 - 8 Copyright © 2002 Harcourt, Inc. All rights reserved. ◼Debt management: Do we have the right mix of debt and equity? ◼Profitability: Do sales prices exceed unit costs, and are sales high enough as reflected in PM, ROE, and ROA? ◼Market value: Do investors like what they see as reflected in P/E and M/B ratios?