Using the Du Pont Identity Method, Calculate Return on Equity

question 55

Multiple Choice

Using the Du Pont Identity Method, calculate return on equity given the following information. Profit margin 16%; total asset turnover 0.85; equity multiplier 1.5.

• A) 20.40%
• B) 21.40%
• C) 22.40%
• D) 23.40%
• E) 24.40%

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Definitions:

Mental Representations

The internal images, ideas, concepts, or symbols that are used to understand the world, solve problems, and navigate one's environment.

Organizations

Structured groups of people with common goals, rules, and roles, established to coordinate their activities and efforts.

Cognitive System

A network of mental processes related to thinking, perception, and memory.

Organization

Refers to a structured group of individuals working together to achieve common goals, which can vary in size, structure, and purpose across different contexts.