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The DuPont Equation Shows That a Firm's (Return on Equity)

Question 14

Multiple Choice

The DuPont equation shows that a firm's (return on equity) ROE is determined by three factors:


A) net profit margin, total asset turnover, and the equity multiplier.
B) operating profit margin, return on assets (ROA) , and the total assets turnover.
C) net profit margin, total asset turnover, the return on assets (ROA) .
D) return on assets (ROA) , total assets turnover, and the equity multiplier.

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