Which one of the following statements is NOT correct?

Question 29 options:

The DuPont system is based on two equations that relate a firm's return on asset (ROA) and return on equity (ROE).

All of these are correct.

The DuPont system is a set of related ratios that links the items of balance sheet and the income statement.

Both management and shareholders can use this tool to understand the factors that drive a firm's return on equity (ROE).