The DuPont Equation Shows That a Firm's (Return on Equity)

question 14

Multiple Choice

The DuPont equation shows that a firm's (return on equity) ROE is determined by three factors:

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