When Determining the Rate of Return on Assets

question 41

Multiple Choice

When determining the rate of return on assets:

• A)the DuPont model breaks return on assets down into three component ratios that drive it.
• B)the DuPont model calculates the rate of return on assets as the net profit margin ratio 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.

---

Definitions:

Ninety-Five Theses

The list of moral grievances against the Catholic Church by Martin Luther, a German priest, in 1517.

Pope Alexander VI

was Pope from 1492 until his death in 1503, known for his controversial papacy and involvement in political, military, and familial machinations to increase power.

Non-Christian World

Regions or societies where Christianity is not the predominant religion, including a broad range of religious and cultural traditions.

Western Hemisphere

The half of the Earth that lies west of the Prime Meridian and east of the antimeridian, including the Americas and parts of Europe, Africa, and Antarctica.