Ratios: DuPont Model for Return on Equity (ROE) Video Lessons

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Problem: Concrete Constructors has a return on assets (ROA) of 7 percent, a 6 percent profit margin, and a return on equity (ROE) of 16 percent.  What is its equity multiplier? a. 2.29 b. 2.67 c. 1.17 d. 13.71 e. 42.00

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Concrete Constructors has a return on assets (ROA) of 7 percent, a 6 percent profit margin, and a return on equity (ROE) of 16 percent.  What is its equity multiplier?

a. 2.29

b. 2.67

c. 1.17

d. 13.71

e. 42.00

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