Using the Du Pont Identity Method, Calculate the Equity Multiplier

question 134

Multiple Choice

Using the Du Pont Identity Method, calculate the equity multiplier given the following information. Profit margin 19%; total asset turnover 1.5; return on equity 37.05%.

• A) 1.2
• B) 1.3
• C) 1.4
• D) 1.5
• E) 1.6

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Definitions:

Flex-Time

An alternative work schedule in which arrival and departure times are flexible.

MBO Programs

Management by Objectives (MBO) programs are systematic and organized approaches that aim to align employees' performance with the organization's goals by setting clear and measurable objectives.

Current Job Performance

The level at which an employee is executing their work responsibilities and tasks at the present time.

Flex-Time System

An employment schedule arrangement that allows workers to choose their work hours within agreed limits, promoting work-life balance.