DuPont analysis involves breaking return-on-assets ratios into their a. Profit components. b. Marginal and average components. c.
Question:
DuPont analysis involves breaking return-on-assets ratios into their
a. Profit components.
b. Marginal and average components.
c. Operating and financing components.
d. Profit margin and turnover components.
Step by Step Answer:
d is correct This is ...View the full answer
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
Related Video
The Dupont analysis is an expanded return on equity formula, calculated by multiplying the net profit margin by the asset turnover by the equity multiplier. The DuPont analysis is also known as the DuPont identity or DuPont model.This Video will guide on how to calculate return on Equity and estimate profitability of shareholders using DuPont Analysis.
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