DuPont equation: GenTech Pharma has reported the following information:
Sales/Total assets = 2.89; ROA = 10.74%; ROE = 20.36%
What are the firm's profit margin and equity multiplier?
A) 7.1%; 0.53
B) 7.1%; 1.90
C) 3.7%; 0.53
D) 3.7%; 1.90
Answer: D
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