When Determining the Rate of Return on Assets

question 173

Multiple Choice

When determining the rate of return on assets:

• A) return on assets is the product of three "drivers" according to the DuPont model.
• B) the DuPont model calculates the rate of return as net profit margin times total asset turnover.
• C) it is important for companies to develop strategies to decrease total asset turnover.
• D) total asset turnover measures how much every sales dollar generates in profit.

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Definitions:

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