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

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

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

8th Edition

ISBN:9781285065137

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter14: Distributions To Shareholders: Dividend And Share Repurchases

Section: Chapter Questions

Problem 2DQ

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Question

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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