Question
All of the Listed Strategies, developed with the help of the following DuPont Identity, will increase the Return on Equity (ROE) of a Firm,.Except. ROE
All of the Listed Strategies, developed with the help of the following DuPont Identity, will increase the Return on Equity (ROE) of a Firm,.Except.
ROE =PM* TATAO* EM (DuPont Identity Formula)
Where, ROE = Return on Equity,. PM = Profit Margin : TATO = Total Asset Turnover: EM = Equity Multiplier
| a. | Increase EM | |
| b. | Increase Prices | |
| c. | Increase Financial Leverage by increasing Debt. | |
| d. | Increase PM | |
| e. | Increase TATO |
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Essential Mathematics For Economic Analysis
Authors: Knut Sydsaeter, Peter Hammond, Arne Strom
4th Edition
0273760688, 9780273760689
