Question

In: Finance

The Dupont formulas says that a firm's _______ is the product of its _______ , its _______ , and it's _______

The Dupont formulas says that a firm's _______  is the product of its _______   , its _______    , and it's _______ 

Solutions

Expert Solution

The Du- Pont formula says that , the ROE of a firm is the product of its net profit margin , asset turnover and it's financial leverage.

ROE = Net income/ sales * sales / assets * assets / equity


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