Use the DuPont system and the following data to find return on equity. Leverage ratio (assets/equity) .........

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Use the DuPont system and the following data to find return on equity.

Leverage ratio (assets/equity) ......... 2.2

Total asset turnover ............. 2.0

Net profit margin ............. 5.5%

Dividend payout ratio ...........31.8%

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.

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Investments

ISBN: 9780073530703

9th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Question Posted: Jan 04, 2013 08:00 AM

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Use the DuPont system and the following data to find return on equity. Leverage ratio (assets/equity) .........

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