The Modified DuPont Equation Says That a Firm with a Low

question 12

Multiple Choice

The modified DuPont equation says that a firm with a low return on total assets can improve its return on equity,all else remaining the same,by ________.

• A)financing more of its assets with debt
• B)increasing its total asset turnover
• C)using less debt
• D)decreasing its total asset turnover

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Definitions:

Slave States

U.S. states prior to the Civil War where slavery was legally permitted and integral to the economy and society.

Texas Territory

A historical territorial area administered by the United States before Texas became a state in 1845.

Martin Van Buren

The eighth President of the United States (1837-1841), known for his role in the development of the American political party system.