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)

---

Definitions:

Turnover Costs

Expenses associated with replacing personnel, including recruiting, hiring, and training new employees.

Minimum Wage

The lowest legal hourly pay rate that employers can offer to workers.

Quantity Supplied

The total amount of a product or service that sellers are willing and able to sell at a given price, over a specified period of time.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price over a specified period.