In the DuPont System, the Return on Equity Is Equal

question 105

Multiple Choice

In the DuPont system, the return on equity is equal to

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

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