Using the five-way DuPont deconstruction of ROE, what is the ROE for a firm with the following: EBIT margin 0.14 Interest burden 0.8 Net after taxes 0.71 Equity multiplier Inventory turns 6.1 Asset turnover 1.7 O 0.2298 0.1916 O 0.2031 O 0.2118 O 0.2207 1.7

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
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Using the five-way DuPont deconstruction of ROE, what is the ROE for a firm with the following:
EBIT margin 0.14
Interest burden 0.8
Net after taxes 0.71
Equity multiplier
Inventory turns 6.1
Asset turnover 1.7
O 0.2298
0.1916
O 0.2031.
O 0.2118
0.2207
1.7
Transcribed Image Text:Using the five-way DuPont deconstruction of ROE, what is the ROE for a firm with the following: EBIT margin 0.14 Interest burden 0.8 Net after taxes 0.71 Equity multiplier Inventory turns 6.1 Asset turnover 1.7 O 0.2298 0.1916 O 0.2031. O 0.2118 0.2207 1.7
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