Using the following DuPont framework ratios, compute return on equity for year 1, year 2, and year3.
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Using the following DuPont framework ratios, compute return on equity for year 1, year 2, and year3.
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Year 2 Year 3 Year 1 20.7% 0,53 1.35 Return on sales Asset turnover Assets-to-equity ratio 19.6% 0.51 1.30 18.9% 0.47 1.28
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Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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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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