Which Portion of the DuPont Identity Measures the Financial Leverage

question 75

Multiple Choice

Which portion of the DuPont identity measures the financial leverage employed by a firm?

• A)Both the profit margin and the equity multiplier
• B)Equity multiplier
• C)Total asset turnover
• D)Both the capital intensity ratio and the total asset turnover
• E)Both the capital intensity ratio and the debt-equity ratio

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Definitions:

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