medium · Principles of Finance financial-statements-markets-wc

According to the DuPont Five-Way Decomposition, if a firm has an EBIT Margin of 15%, Asset Turnover of 1.2, Equity Multiplier of 2.0, Interest Burden of 0.80, and a Tax Burden of 0.70, what is the Return on Equity (ROE)?

  1. 20.16%
  2. 15.12%
  3. 36.00%
  4. 12.60%

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