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QUESTION 12 1 B C 2 Use the DuPont system and the following data: 3 Leverage ratio or Equity Multiplier 2.90 4 Total asset turnover

QUESTION 12

  1. 1 B C
    2 Use the DuPont system and the following data:
    3 Leverage ratio or Equity Multiplier 2.90
    4 Total asset turnover 1.80
    5 Net Profit Margin 5.00%
    6 Dividend Payout Ratio 32.00%
    7 Retention Ratio 68.00%

    What is the DuPont ROA and ROE?

    a.

    DuPont ROA = .0900 = 26.10%

    DuPont ROE = .2610 = 9.00%

    b.

    DuPont ROA = .0900 = 8.00%

    DuPont ROE = .2610 = 25.10%

    c.

    DuPont ROA = .0900 = 9.00%

    DuPont ROE = .2610 = 26.10%

    d.

    DuPont ROA = .0900 = 10.00%

    DuPont ROE = .2610 = 27.10%

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