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Questions : 8 Profitability Ratios What is the DuPont formula? What is each part of the DuPont formula called? Why use the DuPont formula? ROE

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Questions : 8 Profitability Ratios What is the DuPont formula? What is each part of the DuPont formula called? Why use the DuPont formula? ROE = Profit marginx Total asset turnover x Equity multiplier PMA TAT XEM Net income Sales Sales Total assets Total assets Total equity 12

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