In the DuPont system, the return on equity is equal to
A. (net profit margin) (total asset turnover).
B. (stockholders equity) (financial leverage multiplier).
C. (return on total assets) (financial leverage multiplier).
D. (return on total assets) (total asset turnover).
Answer:C
In the DuPont system, the return on equity is equal to
A. (net profit margin) (total asset turnover). B. (stockholders equity) (financial leverage multiplier). C. (return on total assets) (financial leverage multiplier). D. (return on total assets) (total asset turnover).