The Du Pont Identity Can Be Used to Help Managers

Multiple Choice

The Du Pont identity can be used to help managers answer which of the following questions related to a firm's operations?
I.How many sales dollars has the firm generated per each dollar of assets?
II.How many dollars of assets has a firm acquired per each dollar in shareholders' equity?
III.How much net profit is a firm generating per dollar of sales?
IV.Does the firm have the ability to meet its debt obligations in a timely manner?

A) I and III only
B) II and IV only
C) I, II, and III only
D) II, III and IV only
E) I, II, III, and IV