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The original DuPont formula suffers from which of the following shortcomings? A.It does not measure ROE precisely. B.It ignores the negative consequences of financial leverage.

  • The original DuPont formula suffers from which of the following shortcomings?
  • A.It does not measure ROE precisely.
  • B.It ignores the negative consequences of financial leverage.
  • C.It cannot be employed if a firm has had a recent acquisition.
  • D.It ignores the negative consequences of operating leverage

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