The DuPont Identity Expresses the Firm's ROE in Terms Of

question 58

Multiple Choice

The DuPont Identity expresses the firm's ROE in terms of:

• A)profitability,asset efficiency,and leverage.
• B)valuation,leverage,and interest coverage.
• C)profitability,margins,and valuation.
• D)equity,assets,and liabilities.

---

Definitions:

Maintenance Margin

The minimum account balance that must be maintained by an investor in a margin account after purchasing securities on margin.

Stock-index Futures

Futures contracts that use a stock index as the underlying asset, allowing investors to speculate on the future value of the index.

S&P 500

An index that measures the stock performance of 500 large companies listed on stock exchanges in the United States.

DJIA

The Dow Jones Industrial Average, a stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States.