The DuPont Equation Shows That a Company's ROE Is Determined

question 75

Multiple Choice

The DuPont equation shows that a company's ROE is determined by three factors:

• A) net profit margin, total asset turnover, and the equity multiplier
• B) operating profit margin, ROA, and the ROE
• C) net profit margin, total asset turnover, the ROA
• D) ROA, total assets turnover, and the equity multiplier

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Definitions:

Zimbardo

Psychologist known for leading the Stanford Prison Experiment, which studied the psychological effects of perceived power.

Sinister Ways

Methods or actions that are considered to be evil, harmful, or morally wrong.

Unrepresentative

Describes a sample or subset that does not accurately reflect the characteristics of the larger group or population it is meant to represent.

Announcer's Voice

The distinct, clear, and often authoritative vocal tone used by professionals in broadcasting and public speaking to engage and inform listeners.