Alphatech Solutions uses the DuPont system to analyze its financial performance. The following data is available: Metric Value Leverage ratio (assets/equity) 3.0 Total asset turnover 2.2 Net profit margin 4.0% Dividend payout ratio 35.0% Required: Calculate Return on Equity (ROE) using the DuPont formula.
Alphatech Solutions uses the DuPont system to analyze its financial performance. The following data is available: Metric Value Leverage ratio (assets/equity) 3.0 Total asset turnover 2.2 Net profit margin 4.0% Dividend payout ratio 35.0% Required: Calculate Return on Equity (ROE) using the DuPont formula.
Chapter9: Projecting Financial Statements
Section: Chapter Questions
Problem 1aM
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Could you help me solve this financial accounting question using appropriate calculation technical.

Transcribed Image Text:Alphatech Solutions uses the DuPont system to analyze its
financial performance. The following data is available:
Metric
Value
Leverage ratio (assets/equity) 3.0
Total asset turnover
2.2
Net profit margin
4.0%
Dividend payout ratio
35.0%
Required:
Calculate Return on Equity (ROE) using the DuPont formula.
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