When Determining the Rate of Return on Assets

question 41

Multiple Choice

When determining the rate of return on assets:

• A)the DuPont model breaks return on assets down into three component ratios that drive it.
• B)the DuPont model calculates the rate of return on assets as the net profit margin ratio times total asset turnover.
• C)it is important for companies to develop strategies to decrease total asset turnover.
• D)total asset turnover measures how much every sales dollar generates in profit.

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Definitions:

Budgeting Formulas

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