In the Dupont Equation, What Effect Does an Increase in a Firm's

question 82

Multiple Choice

In the Dupont Equation, what effect does an increase in a firm's borrowing costs (i.e., a higher interest rate) have on its net profit margin?

• A)Remain unchanged
• B)Decline by a lot with a high interest rate
• C)Decline by a little with a low interest rate
• D)It will increase

---

Definitions:

Recessive

Describes a genetic trait that is expressed in an organism’s phenotype only when two copies of the gene are present, one from each parent.

Recessive Genes

Genetic traits that require two copies (one from each parent) to be expressed in the offspring. If only one copy is present, the trait will not manifest because it is masked by a dominant gene.

Dominant Genes

These are genes that are expressed over other genes, called recessive genes, in determining certain traits in an organism.

DNA

The molecule that carries genetic instructions for the development, functioning, growth, and reproduction of all known organisms and many viruses.