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The DuPont Identity Can Be Computed As

Question 75

Multiple Choice

The DuPont identity can be computed as:


A) Net income × Profit margin × (1 + Debt-equity ratio) .
B) Profit margin × 1/Capital intensity ratio × (1 + Debt-equity ratio) .
C) Net income × Total asset turnover × Equity multiplier.
D) Profit margin × Total asset turnover × Debt-equity ratio.
E) Return on equity × Profit margin × Total asset turnover.

Correct Answer:

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