In the DuPont System, the Return on Equity Is Equal

question 207

Multiple Choice

In the DuPont system, 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:

EPSP

Excitatory postsynaptic potential; a temporary increase in postsynaptic membrane potential caused by the flow of positively charged ions into the postsynaptic cell, making it more likely for a neuron to fire.

IPSP

Inhibitory postsynaptic potential, a type of synaptic potential that makes a neuron less likely to generate an action potential.

Action Potential

A rapid rise and subsequent fall in voltage or membrane potential across a cellular membrane, momentarily allowing the cell to become depolarized.

Depolarization

The process by which the electrical charge of a cell membrane becomes less negative, leading to the generation of an action potential in neurons.