This topic contains a solution. Click here to go to the answer

Author Question: Which statement regarding the Du Pont analysis is correct? (Read 19 times)

ksmithunr

  • Full Member
  • ***
  • Posts: 176
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.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by ksmithunr on Aug 7, 2023

ekattan2

  • Full Member
  • ***
  • Posts: 151
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.
Answer Preview
Only 39% of students answer this correctly




ksmithunr

  • Member
  • Posts: 176
Reply 2 on: Aug 7, 2023
:D TYSM


bigsis44

  • Member
  • Posts: 317
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

Did you know?

By definition, when a medication is administered intravenously, its bioavailability is 100%.

Did you know?

Oliver Wendell Holmes is credited with introducing the words "anesthesia" and "anesthetic" into the English language in 1846.

Did you know?

The Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

For a complete list of videos, visit our video library