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the DuPont formula relates return on equit The DuPont formula relates return on equity (= Net income, - Stockholders equity) to the company's net profit

the DuPont formula relates return on equit
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The DuPont formula relates return on equity (= Net income, - Stockholders equity) to the company's net profit margin (= Net income Sales), asset turnover (= Sales + Total assets), and equity multiplier (= Total assets + Stockholders equity). This Company is in an industry where the average net profit margin is 6.19%, the debt-to-asset ratio (= Debt + Total assets) is 27.9%, and return on equity is 20.22%. Find below the Company's financial statements for year 2525. Balance Sheet, 12/31/2525 Income, 1/1 - 12/31/2525 $1,750 Current assets $1,150 Debt Sales $12,615 $2.600 PP&E $3.200 Stockholders' equity total costs $11.850 $4,350 Total assets $4,350 net income $765 For the company relative to the industry, select the one statement most consistent with the DuPont analysis. a. the company's asset turnover indicates sales are unusually large relative to its assets b. the company's profit margin indicates its revenues are unusually large relative to its costs c. the company's equity multiplier indicates the firm has an unusually small debt burden d. the company's asset turnover indicates sales are unusually small relative to its assets e. the company's equity multiplier indicates the firm has an unusually large debt burden

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