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Why Is the DuPont System Used by Analysts

Question 47

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Why is the DuPont system used by analysts?


A) The DuPont system provides information about the sources of a company's ROE.
B) The DuPont system is easier to calculate than the standard ROE.
C) The DuPont system produces different ROE results than the standard ROE formula.
D) The DuPont system excludes leverage, which can distort the calculation of ROE.

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