Question: What does not explain the Du Pont System by breaking down ROE into five factors? Answer selection group Among the five factors, the tax burden

What does not explain the Du Pont System by breaking down ROE into five factors?

Answer selection group

Among the five factors, the tax burden ratio is the only one that is not related to capital composition.

ROA can be decomposed into ROS(operating activity) and ATO(Total assets Turnover ratio)..

Composite leverage refers to the debt burden ratio.

The five factors can be broadly abbreviated as tax burden, ROA, and leverage.

Rising tax burdens, interest costs and debt ratios are factors driving down ROE.

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