Which of the following statements is most correct?

a. an increase in a firm's debt ratio, with no changes in its sales and operating costs, could be expected to lower its profit margin on sales.

b. an increase in the dso, other things held constant, would generally lead to an increase in the total asset turnover ratio.

c. an increase in the dso, other things held constant, would generally lead to an increase in the roe.

d. in a competitive economy, where all firms earn similar returns on equity, one would expect to find lower profit margins for airlines, which require a lot of fixed assets relative to sales, than for fresh fish markets.

e. it is more important to adjust the debt/assets ratio than the inventory turnover ratio to account for seasonal fluctuations.

a. An increase in a firm's debt ratio, with no changes in its sales and operating costs, could be expected to lower its profit margin on sales.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.