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:

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