Using the Du Pont Identity Method, Calculate the Equity Multiplier

question 162

Multiple Choice

Using the Du Pont Identity Method, calculate the equity multiplier given the following information. Profit margin 19%; total asset turnover 1.5; return on equity 37.05%.

• A) 1.2
• B) 1.3
• C) 1.4
• D) 1.5
• E) 1.6

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