Under the DuPont System, the Return on Assets Is Equal

question 48

Multiple Choice

Under the DuPont system, the return on assets is equal to:

• A)the product of the gross profit margin and inventory turnover.
• B)the sum of the debt-equity ratio and the return on sales.
• C)the product of the return on sales and total asset turnover.
• D)the product of the return on sales, total asset turnover, and equity multiplier.
• E)None of the above

---

Definitions:

Area

The measure of the extent of a two-dimensional figure or shape in a plane.

Exponential Distribution

A probability distribution used to model the time between events in a Poisson process, describing events that occur continuously and independently.

Waiting Time

The duration of time a person or item spends waiting before a service begins or an event happens.

Degrees of Freedom

The quantity of distinct values or measures that can be attributed to a statistical distribution.