Blue Angel,Inc Using the DuPont Model,calculate the Return on Equity of the Provided

question 44

Multiple Choice

Blue Angel,Inc.generated sales of $420,000 in the year 2014.The accountant provided the following additional information: $$\begin{array} { l r } \text { Net profit margin } & 3 \% \\\text { Total Shareholder's equity } & \$ 112,000 \\\text { Total assets } & \$ 280,000\end{array}$$ Using the DuPont model,calculate the return on equity of the company.

• A) 1.8%
• B) 5%
• C) 11.25%
• D) 0.8%

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Definitions:

Affective Commitment

The emotional attachment an individual feels towards an organization, characterized by identification with, involvement in, and affection for the organization.

Emotional Attachment

The emotional bond between two individuals, marked by feelings of closeness, security, and affection.

Identification

Identification is the process of associating oneself closely with groups, values, or symbols, often influencing behavior and attitudes.

Involvement

The degree of personal interest and engagement an individual exhibits toward a task, role, or organization, often affecting their performance and satisfaction.