The three summary ratios basic to the DuPont system of analysis are
A. net profit margin, total asset turnover, and return on investment.
B. net profit margin, total asset turnover, and return on equity.
C. net profit margin, total asset turnover, and equity multiplier.
D. net profit margin, financial leverage multiplier, and return on equity.
Answer:C
The three summary ratios basic to the DuPont system of analysis are
A. net profit margin, total asset turnover, and return on investment. B. net profit margin, total asset turnover, and return on equity. C. net profit margin, total asset turnover, and equity multiplier. D. net profit margin, financial leverage multiplier, and return on equity.