According to the DuPont System: ROE = (Assets/equity)× (Sales/assets)× [(After-Tax

question 47

True/False

According to the DuPont system: ROE = (assets/equity)× (sales/assets)× [(after-tax interest + net income)/sales] × [(net income)/( after-tax interest + net income)].

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Definitions:

Investment Component

The portion of GDP or economic output that is attributed to investment in physical assets, like buildings, equipment, and inventory.

Financial Investment

The allocation of resources into financial assets, such as stocks, bonds, or real estate, with the expectation of receiving future returns.

Purchases of Services

Transactions where buyers acquire services rather than tangible goods from sellers.

Net Exports Component

The difference between a country's total exports of goods and services and its total imports, part of the gross domestic product calculation.