Following the DuPont Analysis Model, the Higher the Leverage Ratio

question 183

Multiple Choice

Following the DuPont analysis model, the higher the leverage ratio, the higher the:

• A)net profit margin ratio.
• B)return on assets.
• C)return on sales.
• D)return on stockholders' equity.

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Definitions:

Eyes Widened

A physical reaction where the eyelids open more than usual, often in response to surprise, shock, or intense focus.

Mouth Rounded

Describes the shape and position of the lips when forming certain speech sounds, often contrasted with lip spreading or neutral positions.

Carroll Izard

An influential American psychologist known for his contributions to the study of emotions and the development of the Differential Emotions Theory.

Basic Emotions

Fundamental human emotions that are universally experienced, such as happiness, sadness, fear, and anger.