DuPont Analysis Last Year Café Creations, Inc

question 84

Multiple Choice

DuPont Analysis Last year Café Creations, Inc. had an ROA of 25%, a profit margin of 12%, and sales of $4 million. What is Café Creations' total assets?

• A) $0.12 m
• B) $0.48 m
• C) $1.00 m
• D) $1.92 m

---

Definitions:

Lump Sum

A single payment made at a particular time, as opposed to multiple payments over time.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage.

Implied Interest Rate

The calculated interest rate derived from comparing the present value of payments or receipts to the original principal amount, often used in lease transactions.

Equal Annual Payments

Regular payments of the same amount made annually, often used in loans or annuities.