(DuPont analysis) Bryley, Inc. earned a net profit margin of 4.7 percent last year and had an equity multiplier of 3.46...

Question

Question

(DuPont analysis) Bryley, Inc. earned a net profit margin of 4.7 percent last year and had an equity multiplier of 3.46. If i

Answer 1

Answer #1

Return on equity = Net profit margin × Asset turnover × Equity multiplier

Return on equity = 4.7% × ($147,000,000/$97,000,000) × 3.46

Return on equity = 24.64%

Answer 2

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