Is it possible for a company to have high profitability but a low ROE? Select an answer: It is possible, considering the three components of the DuPont framework. The Dupont framework suggests that a company with high profitability will always have a low ROE The Dupont framework suggests that a company with high profitability will always have a high ROE. it is not possible, because ROE is based on a company's profitability in the previous year.
Is it possible for a company to have high profitability but a low ROE? Select an answer: It is possible, considering the three components of the DuPont framework. The Dupont framework suggests that a company with high profitability will always have a low ROE The Dupont framework suggests that a company with high profitability will always have a high ROE. it is not possible, because ROE is based on a company's profitability in the previous year.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 41MCQ
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