What is the Du Pont method for calculating return on investment? What is the advantage of this
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (14 reviews)
The Du Pont method for calculating ROI is described b...View the full answer
Answered By
HABIBULLAH HABIBULLAH
I have been tutor on chegg for approx 5 months and had solved a lot of questions.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Introduction to Accounting An Integrated Approach
ISBN: 978-0078136603
6th edition
Authors: Penne Ainsworth, Dan Deines
Question Posted:
Related Video
The Dupont analysis is an expanded return on equity formula, calculated by multiplying the net profit margin by the asset turnover by the equity multiplier. The DuPont analysis is also known as the DuPont identity or DuPont model.This Video will guide on how to calculate return on Equity and estimate profitability of shareholders using DuPont Analysis.
Students also viewed these Accounting questions
-
What is the Du Pont Equation? And why is it useful?
-
Du Pont Identity Why is the Du Pont identity a valuable tool for analyzing the performance of a firm discuss the types of information ii reveals compared to ROE considered by itself.
-
What is the formula for calculating return on investment (ROI)?
-
The cable is subjected to a uniform loading of w = 60 kN/m. Determine the maximum and minimum tension in cable. -100 m- 12 m
-
When company founder Kamprad decided to expand into China his decision was not based on market research but, rather, on his own intuition. How well is IKEA doing in China? Did Kamprads decision pay...
-
understand the structural and economic changes which led to a rise in the number and power of football agents;
-
Even if all companies in the world were to use IFRS, what are two obstacles to the worldwide com parability of financial statements? LO4
-
The Maxwell Company is financed entirely with equity. The company is considering a loan of $1.8 million. The loan will be repaid in equal installments over the next two years, and it has an interest...
-
11 ! Required information (The following information applies to the questions displayed below.) Part 11 of 15 1 points Sweeten Company had no jobs in progress at the beginning of March and no...
-
Crystal Corporation processes its journal vouchers using batch procedures similar to the process outlined in Figure in the text. To improve customer satisfaction, the sales system is going to be...
-
How is return on investment for a division determined? Why is this information important?
-
These accounts are from the Decker Company. Show how this information is presented on a multistep income statement. Cost of goods sold ...... $ 110,000 Sales .............. 305,000 Selling expenses...
-
Over a period of 4 weeks, a work center produced 50, 45, 42, and 52 standard hours of work. What is the demonstrated capacity of the work center?
-
Create your own privacy philosophy. This should cover the policies you will use for email, texting, social media, and internet usage. Consider what information is being collected anout you in each...
-
1. What future markets might be attractive to Carrefour and which mode of operation would be preferable? How important is the theoretical concept of psychological distance? 2. Corporate...
-
Briefly restate your problem space and methodology. Considering your problem space and methodology, what factors are you considering in deciding whether to use a theoretical foundation or a...
-
In light of your personal experience, what strategies or approaches do you believe could be effective in creating a workplace environment where employees from diverse cultural backgrounds feel both...
-
1. Entrepreneurs hold many common traits, identify five common traits of an entrepreneur that resonate with you and discuss each one of the five traits and why they matter to you. 2. Why is...
-
Will a business that operates with a high gross profit margin necessarily achieve a high operating profit margin and a high return on capital employed?
-
If a and b are positive numbers, find the maximum value of f ( x ) = x a (9 x ) b on the interval 0 x 9.
-
If the viscosity of the liquid is not too high (e.g., less than about $100 \mathrm{cP}$ ), the performance of many centrifugal pumps is not very sensitive to the fluid viscosity. You have a pump with...
-
The cash payments and purchases journals for Out of Eden Landscaping Co. are shown below. The accounts payable control account has a June 1, 2012, balance of $2,450, consisting of an amount owed to...
-
Transactions related to purchases and cash payments completed by Marion Cleaning Services Inc. during the month of August 2012 are as follows: Aug. 1. Issued Check No. 57 to Liquid Klean Supplies...
-
Happy Tails Inc. has a September 1 accounts payable balance of $525, which consists of $340 due Labradore Inc. and $185 due Meow Mart Inc. Transactions related to purchases and cash payments...
-
B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $382,400 and has a 4-year life and no salvage value. B2B...
-
On January 1, 2021, Morrow Inc. purchased a spooler at a cost of $40,000. The equipment is expected to last eight years and have a residual value of $4,000. During its eight-year life, the equipment...
-
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labour-hours and its standard cost card per unit is as follows: Direct material:...
Study smarter with the SolutionInn App