Using the DuPont System of Analysis and Holding Other Factors

question 160

Multiple Choice

Using the DuPont system of analysis and holding other factors constant, an increase in financial leverage will result in ________ in the return on equity.

• A) an increase
• B) a decrease
• C) no change
• D) an undetermined change

---

Definitions:

Risks And Rewards

Risks and rewards are the potential negative and positive outcomes respectively, associated with taking a certain action or decision.

Backchannel

Nonverbal or verbal signals used by listeners to indicate understanding, engagement, or agreement with the speaker.

Live Blogging

The act of providing real-time commentary and updates on an event as it happens, usually online and in a continuous feed.

Texting

The act of sending and receiving short messages, typically via mobile phones, using SMS (Short Message Service) or messaging apps.