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7. DuPont equation As Aa Corporate decision makers and analysts often use a particular technique, DuPont analysis, to better understand the factors that drive company

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7. DuPont equation As Aa Corporate decision makers and analysts often use a particular technique, DuPont analysis, to better understand the factors that drive company performance, as reflected in its return on equity (ROE). By using the DuPont equation, which disaggregates its ROE into three components, analysts can see why the company's ROE may have changed for the better or worse and identify company strengths and weaknesses. The DuPont Equation DuPont analysis is conducted using the DuPont equation, which helps you analyze three important factors that drive a company's ROE. According to the equation, which of the following factors affect a company's ROE directly? Check all that apply. Equity multiplier share price Total assets turnover ratio

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