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In the DuPont Model, return on equity (ROE) is dependent on the firm's:

A. Net margins, debt leverage, and asset turnover.
B. Capital gains and interest income.
C. Interest income and extraordinary income.
D. Diversification and financial leverage.
E. None of these answers is correct.

Respuesta :

Answer:

A. Net margins, debt leverage, and asset turnover.

Explanation:

ROE = (Net income / sales) x (sales / total assets) x (total assets / shareholders equity)

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