TuPont Corp

question 80

Essay

TuPont Corp.has net income of $1.95 million,an effective tax rate of 35%,interest expense of $400,000,an asset turnover of 2.0,and $14 million in total assets,of which $7 million is debt.Use the Du Pont system to calculate its ROE,decomposed into leverage ratio,asset turnover,profit margin,and debt burden.

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Definitions:

Sexually Transmitted Infection

Infectious process spread through sexual contact, including oral, genital, or anal sexual activity.

Auscultated

The process of listening to the sounds made by the internal organs of the body, typically using a stethoscope, as a part of medical examination.

Carotid Artery

Major arteries in the neck that supply blood to the brain, neck, and face.

Bruit

Abnormal sound or murmur heard while auscultating an organ, gland, or artery.