DuPont Identity The DuPont identity presented in the chapter is commonly referred to as the three-factor DuPont identity. Another common way that the DuPont identity is expressed is the five-factor model, which is:

Derive the five-factor DuPont identity (EBT is earnings before tax, but after interest). What does each term measure?

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ROE Net income EBT EBT EBIT EBIT Sales Sales Total assets Total assets Equity