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Author Question: Which statement regarding the Du Pont analysis is correct? (Read 62 times)

ksmithunr

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Which statement regarding the Du Pont analysis is correct?

Suppose a firm’s total assets turnover ratio falls from 1.5 to 1.2, but at the same time its profit margin rises from 8% to 11% and its debt increases from 50% of total assets to 70%. Without additional information, we cannot tell what will happen to the ROE.


Suppose a firm’s total assets turnover ratio falls from 1.5 to 1.2, but at the same time its profit margin rises from 8% to 11% and its debt increases from 50% of total assets to 70%. Under these conditions, the ROE will increase.


Suppose a firm’s total assets turnover ratio falls from 1.5 to 1.2, but at the same time its profit margin rises from 8% to 11% and its debt increases from 50% of total assets to 70%. Under these conditions, the ROE will decrease.


The modified DuPont equation provides information about how operations affect the ROE, but the equation does not include the effects of debt on the ROE.



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Marked as best answer by ksmithunr on Aug 7, 2023

ekattan2

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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ksmithunr

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)


jamesnevil303

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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