In the DuPont System, the Return on Total Assets (Asset)

question 106

Multiple Choice

In the DuPont system, the return on total assets (asset) is equal to

• A) (net profit margin) × (fixed asset turnover).
• B) (return on equity) × (financial leverage multiplier).
• C) (return on equity) × (total asset turnover).
• D) (net profit margin) × (total asset turnover).

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Definitions:

Age

The length of time that a person or thing has existed.

Accident

An unexpected and unintentional incident, often causing injury or damage.

Restrictive Covenant

A clause in a contract or deed that limits what the owner of the property can do with it, often to preserve the value of adjacent land.

Minor

A person who is below the age of majority, legally considered a child and, in many contexts, does not have the full legal rights of an adult.