All of them :) All those reasons.
Answer:
Part a = 2.22 %
Part b = 25.36%
Part c = 23.67%
Explanation:
The Du Pont method is that method which defines the return on equity into three parts that includes gross profit margin, asset turnover, and financial leverage.
The profit margin and asset turnover show the relation with sales revenue whereas the financial leverage show a ratio of debt and shareholder equity.
a. Asset turnover : In duo Pont method,the asset turnover formula :
= Return on Assets ÷ Profit margin
= 17.75% ÷ 8%
= 2.22 %
b. The Return on equity is equal to
= Return on assets ÷ (1 - debt to total assets ratio)
= 17.75% ÷ (1-0.30)
= 25.36%
c. Applying same formula which is used in part b
Return on equity = Return on assets ÷ (1 - debt to total assets ratio)
= 17.75% ÷ (1 - 0.25)
= 17.75% ÷ 0.75
= 23.67%
Hence, Part a = 2.22 %
Part b = 25.36%
Part c = 23.67%
The answer would be Construction
Answer:
They have a proven business model.
Explanation:
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