DuPont Analysis Last Year,DJ's Soda Fountains,Inc

question 133

Multiple Choice

DuPont Analysis Last year,DJ's Soda Fountains,Inc.reported an ROE = 27 percent.The firm's debt ratio was 50 percent,sales were $9 million,and the capital intensity ratio was 1.5 times.What is the net income for DJ's last year?

• A)$1.22m
• B)$1.82m
• C)$2.43m
• D)$2.84m

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Definitions:

Objective

A goal or target that is aimed to be achieved, often used in planning and strategy contexts.

Compounded Semi-Annually

Interest on an investment that is calculated twice a year and added to the principal sum, affecting the total interest earned.

Economic Equivalent

A comparison of the economic attributes of two or more investment or financial scenarios to determine their relative value or financial impact.

Missed Payment

Failure to make a required payment by its due date.