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Which Portion of the DuPont Identity Measures the Financial Leverage

Question 65

Multiple Choice

Which portion of the DuPont identity measures the financial leverage employed by a firm?


A) Both the profit margin and the equity multiplier
B) Equity multiplier
C) Total asset turnover
D) Both the capital intensity ratio and the total asset turnover
E) Both the capital intensity ratio and the debt-equity ratio

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