DuPont Equation: GenTech Pharma Has Reported the Following Information: Sales/Total

question 50

Multiple Choice

DuPont equation: GenTech Pharma has reported the following information: Sales/Total assets = 2.89; ROA = 10.74%; ROE = 20.36%.
What are the company's profit margin and equity multiplier?

• A) 7.1%; 0.53
• B) 7.1%; 1.90
• C) 3.7%; 0.53
• D) 3.7%; 1.90

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Definitions:

Bullwhip Effect

A phenomenon in supply chains where small fluctuations in demand at the retail level cause progressively larger fluctuations in demand at the wholesaler, manufacturer, and raw material supplier levels.

Behavioral Obstacles

Psychological factors or habits that impede individuals or organizations from making rational or optimal decisions.

Bullwhip Effect

A phenomenon in supply chains where small variations in demand at the consumer level cause increasingly larger variations in demand upstream.

Multiple Forecasts

The use of various predictive models or methods to project future situations or trends in different scenarios.