The DuPont Identity tells us that Return on Equity is affected by:

Related Mcqs:

1. Return on assets = 5.5%, Total assets $3,000 and common equity $1,050 then return on equity would be_________?

   A. $22,275
   B. 15.71%
   C. 1.93%
   D. 1.925 times

2. Return on assets = 6.7% and equity multiplier = 2.5% then return on equity will be ______________?

   A. 16.75%
   B. 2.68%
   C. 0.37%
   D. 9.20%

3. The return on assets is equal 6.7% and equity multiplier is equal to 2.5% then the return on equity will be

   A. 0.1675
   B. 0.0268
   C. 0.00373
   D. 0.092

4. The return on assets = 5.5%, Total assets $3,000 and common equity is $1,050 then the return on equity would be _________?

   A. 22275
   B. 0.1571
   C. 0.01925
   D. 1.925 times

5. If the profit margin is equal to 4.5% and the total assets turnover is 1.8% then the return on assets DuPont equation would be _________?

   A. 0.025
   B. 0.081
   C. 0.004
   D. 4 times

6. An equity multiplier is multiplied to return on assets to calculate_________?

   A. Return on assets
   B. Return on multiplier
   C. Return on turnover
   D. Return on stock

7. Cost of capital is equal to required return rate on equity in case if investors are only__________?

   A. Valuation manager
   B. Common stockholders
   C. Asset seller
   D. Equity dealer

8. The net income available to stockholders is $125 and total assets are $1,096 then return on common equity would be ___________?

   A. 0.00114
   B. 0.114
   C. 0.12 times
   D. 0.12

9. The profit margin = 4.5%, assets turnover = 2.2 times, equity multiplier = 2.7 times then return on assets will be __________?

   A. 0.2673
   B. 26.73 times
   C. 0.094
   D. 0.4 times

10. An equity multiplier is multiplied to return on assets to calculate __________?

    A. return on assets
    B. return on multiplier
    C. return on turnover
    D. return on stock