Using the Du Pont Identity Method, Calculate Return on Equity

question 266

Multiple Choice

Using the Du Pont Identity Method, calculate return on equity given the following information. Profit margin 18%; total asset turnover 0.70; equity multiplier 1.1.

• A) 12.16%
• B) 13.86%
• C) 14.16%
• D) 15.86%
• E) 16.16%

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Definitions:

Specific Need

A particular or distinct requirement essential to an individual's well-being or situation.

Directs Behavior

Influences or guidance mechanisms that shape or determine an individual's actions in a specific direction or manner.

Arousal Theory

A theory suggesting that people are motivated to maintain an optimal level of arousal, which can vary from high to low, to enhance their overall performance and well-being.

Optimum Level

The most favorable degree or condition for the maximum effectiveness or success of a function or activity.