HomeSafe Inc. has a 16% Net Profit Margin, a 1.7 Total Asset Turnover, and a 2.5...

Question

Question

Answer 1

Answer #1

As per DuPont Analysis,

Return on Equity = Net Profit Margin * Asset Turnover * Financial Leverage

Return on Equity = 16 * 1.7 * 2.5 = 68% Answer

Kindly do inform me in case you have any queries.

Answer 2

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