The DuPont Method Decomposes Return on Equity into

question 33

Multiple Choice

The DuPont method decomposes return on equity into

• A) return on assets and the debt ratio.
• B) return on assets and the equity multiplier.
• C) operating income and inventory turnover.
• D) net profit margin and fixed asset turnover.

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Definitions:

Wage

The compensation received by workers for their labor, typically quoted on an hourly, daily, or weekly basis.

Quantity of Labor

The total hours of labor provided by workers for the production of goods and services.

Theory of Education

The Theory of Education explores the processes and factors influencing learning, teaching, and the overall educational system.

Innate Productivity

The natural or inherent ability of an individual, firm, or country to produce goods and services efficiently.