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.

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Definitions:

Lack of Support

The absence or inadequacy of assistance, resources, or guidance necessary for success or improvement.

Safety Driven Culture

An organizational approach that prioritizes safety above all, embedding it into every aspect of work life to protect employees.

Occupational Safety and Health Review Commission

An independent federal agency tasked with deciding contests of citations or penalties resulting from OSHA inspections of American workplaces.

Primary Function

The main or core activity that an organization or position is responsible for carrying out.