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
Related questions
Question
What are the key elements of the DuPont formula, and how do these components function to help analysts assess an organization?
Expert Solution
Step 1: DuPont formula
DuPont formula:
The formula for DuPont comprises of 3 key elements. It helps in breaking down the Return on Equity for a better understanding. The return on equity can be calculated dividing the net income by shareholders equity.
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