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Blue Angel,Inc Using the DuPont Model,calculate the Return on Equity of the Provided

Question 44

Multiple Choice

Blue Angel,Inc.generated sales of $420,000 in the year 2014.The accountant provided the following additional information:  Net profit margin 3% Total Shareholder’s equity $112,000 Total assets $280,000\begin{array} { l r } \text { Net profit margin } & 3 \% \\\text { Total Shareholder's equity } & \$ 112,000 \\\text { Total assets } & \$ 280,000\end{array} Using the DuPont model,calculate the return on equity of the company.


A) 1.8%
B) 5%
C) 11.25%
D) 0.8%

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