DuPont equation: Saunders, Inc., has a ROE of 18.7 percent, an equity multiplier of 2.53, sales of $2.75 million, and a total assets turnover of 2.7 times. What is the firm's net income?

Name: DuPont equation: Saunders, Inc., has a ROE of 18.7 percent, an equity multiplier of 2.53, sales of $2.75 million, and a total assets turnover of 2.7 times. What is the firm's net income?
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Question

Quizplus · Accepted Answer

Net income = ROE * Equity multiplier * Sales * Total assets turnover= 18.7% * 2.53 * $2.75 million * 2.7= $514,250.00

DuPont Equation: Saunders, Inc