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Using the Du Pont Identity Method, Calculate the Equity Multiplier

Question 203

Multiple Choice

Using the Du Pont Identity Method, calculate the equity multiplier given the following information. Profit margin 17%; total asset turnover 0.88; return on equity 17.95%.


A) 1.6
B) 1.4
C) 1.2
D) 1.0
E) 0.8

Correct Answer:

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