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    Introduction to Corporate Finance Study Set 3
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    Exam 4: Financial Statement Analysis and Forecasting
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    What Are the Three Ratios Used in the DuPont System
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What Are the Three Ratios Used in the DuPont System

Question 28

Question 28

Essay

What are the three ratios used in the DuPont system of financial analysis of return on equity?

Correct Answer:

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ROE = Net Profit ÷ Shareholders' Equity
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