Du Pont Identity Why is the Du Pont identity a valuable tool for analyzing the performance of
Question:
Du Pont Identity Why is the Du Pont identity a valuable tool for analyzing the performance of a firm discuss the types of information ii reveals compared to ROE considered by itself.
Step by Step Answer:
Return on equity is probably the most important accounti...View the full answer
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
Related Video
The Dupont analysis is an expanded return on equity formula, calculated by multiplying the net profit margin by the asset turnover by the equity multiplier. The DuPont analysis is also known as the DuPont identity or DuPont model.This Video will guide on how to calculate return on Equity and estimate profitability of shareholders using DuPont Analysis.
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