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

question 69

Multiple Choice

The DuPont equation shows that a firm'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:

PEM

Protein-Energy Malnutrition, a nutritional deficiency disorder caused by a lack of dietary protein and energy.

Malnourished

Suffering from malnutrition due to not getting enough food or not getting the right sort of food.

Formula

A mathematical relationship or rule expressed in symbols.

Population

A term used to describe a group of individuals of the same species living in a particular area, or more broadly, the inhabitants of a particular region or country.