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Year 3 3.2% The following information is presented for a Company for three years: Year 1 Year 2 Profit Margin Ratio or 4.7% 8.2% Net
Year 3 3.2% The following information is presented for a Company for three years: Year 1 Year 2 Profit Margin Ratio or 4.7% 8.2% Net Profit Ratio Return on Assets 4.1% 7.8% Leverage Ratio 2.71 2.9 3.6% 3.05 Using Dupont Analysis, indicate which of the following statements is true: A. Year 3 resulted in the greatest Return on Equity as compared to Year 1 and Year 2. B. Leverage was the most significant driver of the Company's Return on Equity in Year 2. C. Net Profit margin was the most significant driver of the Company's Return on Equity in Year 2 and Year 3. D. Return on Equity for Year 2 was driven more by profitability and efficiency and less by leverage
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