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In 2018 XYZ Co. had sales of $86 billion and a net income of $41 billion, and its year-end total assets were $210 billion. The firm's total debt-to- total assets ratio was 46.9%. Based on the DuPont equation, what was XYZ Co.'s ROE in 2018? a) 22.97% b) 36.77% c) 25.62% d) 21.02% e) 14.01%

In 2018 XYZ Co. had sales of $86 billion and a net income of $41 billion, and its year-end total assets were $210 billion. The firm's total debt-to- total assets ratio was 46.9%. Based on the DuPont equation, what was XYZ Co.'s ROE in 2018? a) 22.97% b) 36.77% c) 25.62% d) 21.02% e) 14.01%

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 23MCQ
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Dupont equation of xyz co.

In 2018 XYZ Co. had sales of $86 billion and a net income of $41 billion, and its year-end total assets were $210 billion. The firm's total debt-to- total assets ratio was 46.9%. Based on the DuPont equation, what was XYZ Co.'s ROE in 2018? a) 22.97% b) 36.77% c) 25.62% d) 21.02% e) 14.01%
Transcribed Image Text:In 2018 XYZ Co. had sales of $86 billion and a net income of $41 billion, and its year-end total assets were $210 billion. The firm's total debt-to- total assets ratio was 46.9%. Based on the DuPont equation, what was XYZ Co.'s ROE in 2018? a) 22.97% b) 36.77% c) 25.62% d) 21.02% e) 14.01%
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