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Company A has identified Company B as a target company for purchase. Operating results for the two companies are as follows: -----------------------------------------------Company A-------------- Company B-----------------
Company A has identified Company B as a target company for purchase.
Operating results for the two companies are as follows:
-----------------------------------------------Company A-------------- Company B-----------------
Question: what's the Dupont ratio(s). (NOTE: "Overall Results" reflect DuPont ratios if the two companies were added together.)
a. Overall results: Margin = 15.0%
b. G&G: Asset turnover = 2.40
c. P&L: ROI = 7.50%
d. Overall results: ROI = 23.0%
e. None of the other answers are correct
Sales Variable expenses Contribution margin Fixed expenses Net income Assets $ $ $ $ $ $ 800,000 $ 480,000 $ 320,000 $ 200,000 $ 120,000 $ 500,000 $ 240,000 180,000 60,000 42,000 18,000 100,000Step by Step Solution
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