Examveda
Examveda

If profit margin = 4.5% and total assets turnover = 1.8% then return on assets DuPont equation would be

A. 2.50%

B. 8.10%

C. 0.40%

D. 4.00%

Answer: Option B

Solution(By Examveda Team)

Return on assets = Total assets turnover × Profit margin
= 1.8% × 4.5% = 8.10%

This Question Belongs to Commerce >> Financial Management

Join The Discussion

Related Questions on Financial Management

Investment is the _______________.

A. net additions made to the nation’s capital stocks

B. person’s commitment to buy a flat or house

C. employment of funds on assets to earn returns

D. employment of funds on goods and services that are used in production process