Use the information below to answer the following question(s).Thacker Company has two regional offices.The information for each is as follows:

-The DuPont method of profitability analysis is
A)TA - CL/operating income.
B)ROI × WACC.
C)[revenue/investment] × [income/revenue].
D)ROI/WACC.
E)ROI × RI.

Question

Use the information below to answer the following question(s).Thacker Company has two regional offices.The information for each is as follows:
 
-The DuPont method of profitability analysis is
A)TA - CL/operating income. 
B)ROI × WACC. 
C)[revenue/investment] × [income/revenue]. 
D)ROI/WACC. 
E)ROI × RI.

Quizplus · Accepted Answer

The DuPont method of profitability analysis is a formula that breaks down return on equity (ROE) into three components: revenue/investment, income/revenue, and investment/equity. The formula can be written as [revenue/investment] × [income/revenue] × [investment/equity]. Therefore, the closest option to this formula is C).

Use the Information Below to Answer the Following Question(s)