Under the Dupont Technique, which of the following is false? * O The return on asset is the computed by multiplying the return on sales and the asset turnover. O Dupont Technique reveals the factors that determines the firm's return on asset. Asset management, as represented by the ratio of net sales and average equity, is one of the factors that is considered in deriving the return on assets. O The Company's assessment of asset utilization and profitability can be determined by the Dupont Technique.
Under the Dupont Technique, which of the following is false? * O The return on asset is the computed by multiplying the return on sales and the asset turnover. O Dupont Technique reveals the factors that determines the firm's return on asset. Asset management, as represented by the ratio of net sales and average equity, is one of the factors that is considered in deriving the return on assets. O The Company's assessment of asset utilization and profitability can be determined by the Dupont Technique.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Under the Dupont Technique, which of the following is false? * A
O The return on asset is the computed by multiplying the return on sales and the asset turnover.
O Dupont Technique reveals the factors that determines the firm's return on asset.
Asset management, as represented by the ratio of net sales and average equity, is one of the factors that is
considered in deriving the return on assets.
O The Company's assessment of asset utilization and profitability can be determined by the Dupont Technique.
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