DuPont equation: Sorenstam Corp has an equity multiplier of 2.34 times, total assets of $4,512,895, a ROE of 17.5 percent, and a total assets turnover of 3.1 times. Calculate the firm's ROA.
A) 6.23%
B) 4.53%
C) 7.48%
D) 5.79%
Answer: C
DuPont equation: Sorenstam Corp has an equity multiplier of 2.34 times, total assets of $4,512,895, a ROE of 17.5 percent, and a total assets turnover of 3.1 times. Calculate the firm's ROA.
A) 6.23%
B) 4.53%
C) 7.48%
D) 5.79%
Answer: C
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