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The DuPont System determines the ROE of a firm as the product of the firm's profit...

The DuPont System determines the ROE of a firm as the product of the firm's profit margin, equity multiplier, and it's______.

Question 40 options:

Current Ratio

Inventory Turnover

Total Asset Turnover

Fixed Asset Turnover
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Answer #1

  

_______________________________

_______________________________

The DuPont System determines the ROE of a firm as the product of the firm's profit margin, equity multiplier, and it's Total Asset Turnover

ROE = Profit Margin * Total Assets Turnover Ratio * Equity Multiplier

Option 3 is correct.

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