Vidyalelo
Commerce · Q298

Financial Management

Graduate and Post Graduate · Commerce · question 298

Q298

If profit margin = 4.5% and total assets turnover = 1.8% then return on assets DuPont equation would be

A.
2.50%
B.
8.10%
Answer
C.
0.40%
D.
4.00%

Answer: Option B

Solution

Answer: Option B
Solution:
Return on assets = Total assets turnover × Profit margin
= 1.8% × 4.5% = 8.10%