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An equation in which total assets are multiplied to profit margin...

This question belongs to Commerce Financial Management
Financial Management
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An equation in which total assets are multiplied to profit margin is classified as

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Correct Answer: Option A
An equation in which total assets are multiplied to profit margin is classified as du DuPont equation. In the DuPont equation, ROE is equal to profit margin multiplied by asset turnover multiplied by financial leverage. Under DuPont analysis, return on equity is equal to the profit margin multiplied by asset turnover multiplied by financial leverage.
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