subject
Business, 25.01.2020 01:31 cylertroutner

Corporate decision makers and analysts often use a particular technique, called a dupont analysis, to better understand the factors that drive a company's financial performance, as reflected by its return on equity (roe). by using the dupont equation, which disaggregates the roe into three components, analysts can see why a company's roe may have changed for the better or worse, and identify particular company strengths and weaknesses the dupont equation a dupont analysis is conducted using the dupont equation, which to identify and analyze three important factors that drive a company's roe. according to the equation, which of the following factors directly affect a company's roe? check all that apply price per share earnings per share sales / total assets net income/ sales most investors and analysts in the financial community pay particular attention to a company's roe. the roe can be calculated simply by dividing a firm's net income by the firm's shareholder's equity, and it can be subdivided into the key factors that drive the roe. investors and analysts focus on these drivers to develop a clearer picture of what is happening within a company. an analyst gathered the following data and calculated the various terms of the dupont equation for three companies: roe 12.0% 15.5% 21.5% profit margin x total assets turnover x equity multiplier company a company b company c 57.3% 58.2% 58.0% 9.8 10.2 10.3 2.14 2.61 3.60 referring to these data, which of the following conclusions will be true about the companies' roes? o the main driver of company a's inferior roe, as compared to that of company b's and company c's roe, is its use of higher debt financing o the main driver of company a's inferior roe, as compared to that of company c's roe, is its higher total asset turnover ratio the main driver of company c's superior roe, as compared to that of company a's and company b's roe, is its greater use of debt financing

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 20:00
When an interest-bearing note comes due and is uncollectible, the journal entry includes debiting
Answers: 3
question
Business, 22.06.2019 00:00
Which statement about the cost of the options is true? she would save $1,000 by choosing option b. she would save $5,650 by choosing option a. she would save $11,200 by choosing option b. she would save $11,300 by choosing option a.
Answers: 2
question
Business, 22.06.2019 10:50
Kimberly has been jonah in preparing his personal income tax forms for a couple of years. jonah's boss recommended kimberly because she had done a good job setting up the company's new accounting system. jonah is very satisfied with kimberly's work and feels that the fees she charges are quite reasonable. kimberly would be classified as a(n) (a) independent auditor (b) private accountant (c) public accountant (d) accounting broker
Answers: 1
question
Business, 22.06.2019 12:10
Drag each label to the correct location on the image determine which actions by a manager are critical interactions - listening to complaints - interacting with customers - responding to complaints - assigning staff duties -taking action to address customer grievances -keeping track of reservations
Answers: 2
You know the right answer?
Corporate decision makers and analysts often use a particular technique, called a dupont analysis, t...
Questions
question
Chemistry, 02.05.2021 01:50
question
Mathematics, 02.05.2021 02:00
Questions on the website: 13722367