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daser333 [38]
3 years ago
10

The DuPont identity can be used to help managers answer which of the following questions related to a company's operations?

Social Studies
1 answer:
coldgirl [10]3 years ago
3 0

Answer:

The correct answer is II. How many dollars of assets have been acquired per each dollar in shareholders' equity?

Explanation:

The DuPont identity shows a firm's Return On Equity (ROE) as a function of three ratios that work as variables: a) the profit margin, b) the total asset turnover and c) the equity multiplier.

The second ratio (total asset turnover) measures the asset use efficiency and can be thought of as the result of total assets divided by shareholder equity.

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4 years ago
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