Economics · Financial Management
According to the DuPont analysis, the Return on Equity (ROE) increases if: 1. Net profit margin increases, other factors remaining constant 2. Asset turnover decreases, other factors remaining constant 3. Equity multiplier increases, other factors remaining constant 4. Sales increase proportionately more than total assets
- 11 and 3 only
- 21, 3 and 4 only✓
- 32 and 4 only
- 41, 2 and 3 only
Correct answer
1, 3 and 4 only
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