The DuPont Model measures ROE by multiplying __________.

A. the current ratio x total asset turnover x the equity multiplier
B. the profitability ratio x times interest earned x the equity multiplier
C. the profitability ratio x total asset turnover x the equity multiplier
D. the current ratio x times interest earned x the equity multiplier


Answer: C. the profitability ratio x total asset turnover x the equity multiplier

Business

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