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The Du Pont Identity Can Be Used to Help a Financial

Question 18

Multiple Choice

The Du Pont identity can be used to help a financial manager determine:
I.the degree of financial leverage used by a firm
II.the operating efficiency of a firm
III.the utilisation rate of a firm's assets
IV.the rate of return on a firm's assets


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

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