In the DuPont System of Analysis, the Return on Equity

question 92

Multiple Choice

In the DuPont system of analysis, the return on equity is equal to ________.

• A) (net profit margin) × (total asset turnover)
• B) (stockholders' equity) × (financial leverage multiplier)
• C) (return on total assets) × (financial leverage multiplier)
• D) (return on total assets) × (total asset turnover)

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Definitions:

Training Costs

The expenses incurred in the process of developing the skills and knowledge of employees.

Merit Pay Plan

A compensation strategy that awards pay increases or bonuses based on an employee's performance, accomplishments, or achievements.

High Pay

A level of remuneration that is significantly above the average or expected salary for a job or position.

Perform

To carry out, execute, or conduct (an action or task).