The DuPont Method Decomposes Return on Equity into [Blank]

question 16

Multiple Choice

The DuPont method decomposes return on equity into [blank].

• A)return on assets and the debt ratio
• B)return on assets and the equity multiplier
• C)operating profit and inventory turnover
• D)net profit margin and fixed asset turnover

---

Definitions:

Increased By

A term describing how an amount is made larger or expanded in size, volume, number, or extent.

Reduction

A decrease in the amount, size, or intensity of something, often referring to prices, costs, or risks.

Percent Change

The measure of how much a quantity has grown or shrunk, represented as a percentage of the original quantity.

Unit Price

The price attributed to an individual unit of a product or service.