Using the Du Pont Identity Method, Calculate Return on Equity

question 62

Multiple Choice

Using the Du Pont Identity Method, calculate return on equity given the following information. Profit margin 18%; total asset turnover 0.70; equity multiplier 1.1.

• A) 12.16%
• B) 13.86%
• C) 14.16%
• D) 15.86%
• E) 16.16%

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Definitions:

Customer Benefit Approach

The customer benefit approach focuses on presenting how a product or service can solve a customer's problem or improve their situation.

Gift

An item given willingly to someone without expectation of payment; typically a gesture of goodwill or symbol of appreciation.

Asking Question

A technique in sales and communication involving the use of questions to engage with a potential customer, understand their needs, and guide them towards a solution.

Showmanship Approach

An engaging and dynamic method of presentation or sales, emphasizing entertainment and flair to captivate the audience.