Question: Using the information below, find the equity multiplier (EM), and show that the DuPont identity holds. Return of equity (ROE) = 25% Inventory = $1500

Using the information below, find the equity multiplier (EM), and show that the DuPont identity holds.

Return of equity (ROE) = 25% Inventory = $1500 Total equity = $4000 Taxes = $200 Revenues = $8000 Depreciation = $300 Total asset turnover = 0.8

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