The Du Pont System Shows Which of the Following Series

question 48

Multiple Choice

The Du Pont System shows which of the following series of relationships?

• A)Net profit margin x total asset turnover = Return on investment.
• B)Net profit margin x financial leverage = Return on equity.
• C)Net profit margin x total asset turnover = Return on investment and Return on investment x financial leverage = Return on equity.
• D)Net profit margin x total asset turnover = Return on equity and Return on equity x financial leverage = Return on investment.