The three input ratios (not output) to the DuPont model of financial statement analysis are: a) Net profit margin, total asset turnover, and return on investment. b) Net profit margin, total asset turnover, and return on equity. c) Net profit margin, total asset turnover, and leverage (equity multiplier). d) Net profit margin, financial leverage multiplier, and return on equity.

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
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The three input ratios (not output) to the DuPont model of financial statement analysis are:

 
The three input ratios (not output) to the DuPont model of financial statement
analysis are:
a) Net profit margin, total asset turnover, and return on investment.
b) Net profit margin, total asset turnover, and return on equity.
c) Net profit margin, total asset turnover, and leverage (equity multiplier).
d) Net profit margin, financial leverage multiplier, and return on equity.
Transcribed Image Text:The three input ratios (not output) to the DuPont model of financial statement analysis are: a) Net profit margin, total asset turnover, and return on investment. b) Net profit margin, total asset turnover, and return on equity. c) Net profit margin, total asset turnover, and leverage (equity multiplier). d) Net profit margin, financial leverage multiplier, and return on equity.
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