The DuPont identity can be accurately defined as:
A)Return on equity × Total asset turnover × Equity multiplier.
B)Equity multiplier × Return on assets.
C)Profit margin × Return on equity.
D)Total asset turnover × Profit margin × Debt-equity ratio.
E)Equity multiplier × Return on assets × Profit margin.

Question

Quizplus · Accepted Answer

The Answer of The DuPont identity can be accurately defined as:
A)Return on equity × Total asset turnover × Equity multiplier.
B)Equity multiplier × Return on assets.
C)Profit margin × Return on equity.
D)Total asset turnover × Profit margin × Debt-equity ratio.
E)Equity multiplier × Return on assets × Profit margin.

The DuPont Identity Can Be Accurately Defined As