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Use the DuPont system and the following data to find return on equity.(Do not round intermediate calculations. Round your answer to 1 decimal place.)

Leverage ratio 2.8
Total asset turnover 2.5
Net profit margin 5.3 %
Dividend payout ratio 35.2 %
Return on equity %

User Benwiggy
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1 Answer

14 votes
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Answer:Return on Equity= 37.1%

Step-by-step explanation:

According to the DuPont Analysis System,

Return on Equity = Leverage Ratio x Net profit margin x Total asset turnover

Return on Equity = 2.8 x 5.3% x 2.5

Return on Equity=0.371

Return on Equity= 37.1%

User Krupal Shah
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