What is the equation for ROA in the DuPont system, and how do the factors in that

Question:

What is the equation for ROA in the DuPont system, and how do the factors in that equation influence the ratio?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

See More Books

Question Posted: Jun 08, 2012 12:17 AM

See More Questions

What is the equation of this point? 100
What is the equation of exchange?
What is the equation for the PV of a growing perpetuity with a payment of C one period from today if the payments grow by C each period?
The balance sheet of Lamont Bros. follow: (a) What portions of Lamont's assets were provided by debt, contributed capital, and earned capital? Reduce contributed capital by the cost of the treasury...
What would be the biggest problem in implementing an ERP in your department?
You have been hired as a consultant by CARE (Conservatives Are REsponsible), a political action committee focusing on fiscal responsibility. The Florida chapter has become increasingly worried about...
For the following scores, which of the following actions will increase the range? Scores: 3, 7, 10, 15 a. Add 4 points to the score X 5 3 b. Add 4 points to the score X 5 7 c. Add 4 points to the...
On January 1, 2018, Nguyen Electronics leased equipment from Nevels Leasing for a four-year period ending December 31, 2021, at which time possession of the leased asset will revert back to Nevels....
nagement (EBA519) - Ara Snav 5. Compute the Quick ratio if Current Assets: 10.354 Current Liabilities: 6.615; Inventory: 5.767; Cash: 1.013. a) 0.15 times by 0.69 times C) 0.75 times d) 0.72 times Bo...
BARGAINING PRICE WITH THE CHINESE BY DR ROB MARCH K. G. Marwin Inc. developed a particular technology in the 1980s, called the Trilliamp Process, that the Chinese government sought to integrate into...
What is the purpose of the DuPont system of analysis?
What are the three major shortcomings of ROE?
One Glass Brewery estimates the following activity for the coming year: Expected production ............................................ 10 000 units Expected direct labour hours...
Classic Auto Parts sells new and used auto parts. Although a majority of its sales are cash sales, it makes a significant amount of credit sales. During 2012, its first year of operations, Classic...
The following information is available for Market Inc. and Supply Inc. at December 31, 2012: Required a. What is the accounts receivable turnover for each of the companies for 2012 ? b. What is the...
Buck Novak, the chief executive officer of Novak Corporation, has assembled his top advisers to evaluate an investment opportunity. The advisers expect the company to pay $$400,000$ cash at the...
Verify the log-likelihood in equation (16.4) for the Tobit model. In L = = In { 1-0 (x-di)} 1:y=di 122. + (y; - x) 02 (16.4) i:y;>di
Milo Company is considering the purchase of new equipment for its factory. It will cost $$250,000$ and have a $$50,000$ salvage value in five years. 1 he annual net income from the equipment is...
You are worried that someone else will buy a specific franchise in your area before you do. Would it be appropriate to sign the franchise agreement before talking to your lawyer or accountant if you...
Refer to the data in QS 10-1. Based on financial considerations alone, should Helix accept this order at the special price? Explain.
Which aspects of project management can be supported by a database system?
Refer to the balance sheet and income statement for Abercrombie Supply Company for the fiscal year ended June 30, 2014. Use the DuPont equation to calculate the return on equity (ROE). In the...
Why is the ROE a more appropriate proxy (for stockholder value maximization) for some firms than for other firms?
Market-value ratios: Rockwell Jewelers management announced that the company had net earnings of $6,481,778 for this year. The company has 2,543,800 shares outstanding, and the year-end stock price...
QUESTION 3 A business owns seven flats rented out to staff at R500 per month. All flats were tenanted Ist january 21 months rent was in arrears and as at 31st December 14 months' rent wa Identify the...
1. 2. 3. Select the Tables sheet, select cells A6:B10, and create range names using the Create from Selection button [Formulas tab, Defined Names group]. Select cells B1:F2 and click the Name box....
Tropical Rainwear issues 3,000 shares of its $18 par value preferred stock for cash at $20 per share. Record the issuance of the preferred shares. (If no entry is required for a particular...

What is the equation for ROA in the DuPont system, and how do the factors in that

Question:

Step by Step Answer:

In the previous section you learned that ROA is calculated as net income divid...View the full answer

Fundamentals of corporate finance

Related Video

Students also viewed these Corporate Finance questions