Question 1
When would the "return on equity" equal the "return on assets"?Question 2
Which of the following is a TRUE statement about the Du Pont equation?I. | It is a mathematical identity. |
II. | It provides a causal explanation for changes (or differences) in ROE. |
III. | It is used to analyze chemical companies. |
Answer 1
Whenever the debt ratio is zeroAnswer 2
I and II