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Using the Dupont formula for Company A, Return on Equity (ROE) is 78.80% *The formula used for ROE=Profit Margin*Asset Turnover*Equity Multiplier ROE = 15.52%*2.18*2.33 ROE
Using the Dupont formula for Company A, Return on Equity (ROE) is 78.80% *The formula used for ROE=Profit Margin*Asset Turnover*Equity Multiplier ROE = 15.52%*2.18*2.33 ROE = 78.80% Using the above formula, explain how working capital policy of a large textile Company A would affect the expected ROE
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