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Which of the following statements is NOT correct? The DuPont Identity analysis decomposes return on equity (ROE) into profit margin, total asset turnover, and equity

Which of the following statements is NOT correct?

The DuPont Identity analysis decomposes return on equity (ROE) into profit margin, total asset turnover, and equity multiplier.

The equity multiplier measures the firms financial leverage.

The profit margin measures the firms short-term liquidity.

The total asset turnover measures the firms asset use efficiency.

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