What is the DuPont Identity and how can a financial manager use it?
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What is the DuPont Identity and how can a financial manager use it?
DuPont IdentityThe DuPont identity is an expression that shows a company's return on equity (ROE) can be represented as a product of three other ratios: the profit margin, the total asset turnover, and the equity multiplier. The formula for the DuPont identity...
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The DuPont Identity takes the return on equity ROE and breaks it into three components net ...View the full answer
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9780133507676
3rd Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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