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Table 3.2 Dana Dairy Products Key Ratios Income Statement

Question 146

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Table 3.2
Dana Dairy Products Key Ratios Table 3.2 Dana Dairy Products Key Ratios Income Statement Dana Dairy Products For the Year Ended December 31, 2010 Balance Sheet Dana Dairy Products December 31, 2010 -Using the modified DuPont formula allows the analyst to break Dana Dairy Products return on equity into 3 components: the net profit margin, the total asset turnover, and a measure of leverage (the financial leverage multiplier) . Which of the following mathematical expressions represents the modified DuPont formula relative to Dana Dairy Products' 2010 performance? (See Table 3.2) A) 5.6(ROE) = 2.5(ROA) × 2.24(Financial leverage multiplier) B) 5.6(ROE) = 3.3(ROA) × 1.70(Financial leverage multiplier) C) 4.0(ROE) = 2.0(ROA) × 2.00(Financial leverage multiplier) D) 2.5(ROE) = 5.6(ROA) × 0.44(Financial leverage multiplier) Income Statement
Dana Dairy Products
For the Year Ended December 31, 2010 Table 3.2 Dana Dairy Products Key Ratios Income Statement Dana Dairy Products For the Year Ended December 31, 2010 Balance Sheet Dana Dairy Products December 31, 2010 -Using the modified DuPont formula allows the analyst to break Dana Dairy Products return on equity into 3 components: the net profit margin, the total asset turnover, and a measure of leverage (the financial leverage multiplier) . Which of the following mathematical expressions represents the modified DuPont formula relative to Dana Dairy Products' 2010 performance? (See Table 3.2) A) 5.6(ROE) = 2.5(ROA) × 2.24(Financial leverage multiplier) B) 5.6(ROE) = 3.3(ROA) × 1.70(Financial leverage multiplier) C) 4.0(ROE) = 2.0(ROA) × 2.00(Financial leverage multiplier) D) 2.5(ROE) = 5.6(ROA) × 0.44(Financial leverage multiplier) Balance Sheet
Dana Dairy Products
December 31, 2010 Table 3.2 Dana Dairy Products Key Ratios Income Statement Dana Dairy Products For the Year Ended December 31, 2010 Balance Sheet Dana Dairy Products December 31, 2010 -Using the modified DuPont formula allows the analyst to break Dana Dairy Products return on equity into 3 components: the net profit margin, the total asset turnover, and a measure of leverage (the financial leverage multiplier) . Which of the following mathematical expressions represents the modified DuPont formula relative to Dana Dairy Products' 2010 performance? (See Table 3.2) A) 5.6(ROE) = 2.5(ROA) × 2.24(Financial leverage multiplier) B) 5.6(ROE) = 3.3(ROA) × 1.70(Financial leverage multiplier) C) 4.0(ROE) = 2.0(ROA) × 2.00(Financial leverage multiplier) D) 2.5(ROE) = 5.6(ROA) × 0.44(Financial leverage multiplier)
-Using the modified DuPont formula allows the analyst to break Dana Dairy Products return on equity into 3 components: the net profit margin, the total asset turnover, and a measure of leverage (the financial leverage multiplier) . Which of the following mathematical expressions represents the modified DuPont formula relative to Dana Dairy Products' 2010 performance? (See Table 3.2)


A) 5.6(ROE) = 2.5(ROA) × 2.24(Financial leverage multiplier)
B) 5.6(ROE) = 3.3(ROA) × 1.70(Financial leverage multiplier)
C) 4.0(ROE) = 2.0(ROA) × 2.00(Financial leverage multiplier)
D) 2.5(ROE) = 5.6(ROA) × 0.44(Financial leverage multiplier)

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