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3) Why is the Dupont Model a better way to look at return on equity than just dividing net income by equity? 4) Why can
3) Why is the Dupont Model a better way to look at return on equity than just dividing net income by equity?
4) Why can a common size income statement, in certain circumstances, reveal more about a company's profitability than just looking at the dollar amounts of each item?
5) STU issued $100 par value, 5% preferred stock (The dividend will not ever increase). What would the price of the stock be if rates dropped to 4% on similar preferred stock?
6) The breakeven for Shifty Enterprises is 100,000 units. If fixed costs are $1,000,000 and selling price per unit is $50, what revenue and number of units would need to be sold to make a profit of $500,000?
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