The DuPont Analysis Calculates ROE as the Product of

question 43

Multiple Choice

The DuPont analysis calculates ROE as the product of

• A) leverage, market value, and turnover.
• B) margin, turnover, and leverage.
• C) profitability, liquidity, and leverage.
• D) activity, leverage, and debt.
• E) margin, profitability, and leverage.

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Definitions:

GDP Deflator

An indicator of the price levels for all fresh, domestically created, final goods and services within an economy, utilized to modify nominal GDP for the determination of real GDP.

Real GDP

The total value of all goods and services produced within a country, adjusted for inflation, over a specific time period.

Percentage Change

A mathematical calculation that shows how much a quantity has increased or decreased as a proportion of its previous value.

GDP Deflator

An economic measure of inflation that divides the nominal GDP by the real GDP and multiplies by 100, showing how much prices have changed over a specified time.