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In the 5-way DuPont deconstruction, which of the following would lead to a DECREASE in Return on Equity (ROE), all else kept equal? (Be mindful
In the 5-way DuPont deconstruction, which of the following would lead to a DECREASE in Return on Equity (ROE), all else kept equal? (Be mindful that some ratios have a counterintuitive effect on ROE or may be just one part of a DuPont ratio.) a decrease in gross margin increasing the debt/equity ratio by adding to debt an increase in the asset turnover ratio a decrease in the marginal tax rate for the firm an increase in the interest burden ratio used in DuPont analysis
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