The Calculation for Return on Equity Using Dupont Analysis Is

question 53

Multiple Choice

The calculation for return on equity using Dupont Analysis is:

• A) Profit margin x Asset turnover x Financial leverage
• B) Profit margin x Asset turnover
• C) Asset turnover x Financial leverage
• D) Gross profit margin x Asset turnover x Financial leverage

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Definitions:

Note Payable

A written agreement where one party promises to pay another a definite sum of money at a future date or on demand, sometimes with interest.

FICA Tax Rate

The percentage of social security and Medicare taxes that both employees and employers must pay, based on wages paid.

Wage Bracket

A range or category of income levels used to calculate tax withholdings or determine pay scales based on earnings.

Withholding Table

A chart or table used by employers to determine the amount of tax to withhold from an employee's paycheck based on earnings and tax status.