Question
Equity Multiplier allows the Investors to see: (In
DuPont Analysis)Solution
Dupont analysis helps to identify the source of a company’s return. It gives an expanded form of the RoE of the company by breaking down the RoE into three ratios related to profitability (net profit margin), operational efficiency (total asset turnover), and financial leverage (equity multiplier). Thus, it’s helpful in analyzing the reason for the profitability of a company. As per DuPont analysis,  RoE = Net profit margin * asset turnover * financial leverage Financial Leverage = Assets/Shareholders’ Equity It is possible for a company with terrible sales and margin to take on excessive debt and artificially increase its return on equity. The equity multiplier allows the investors to see what proportion of return on equity is of debt.
In the question below there are three statements followed by two conclusions I and II. You have to take the three given statements to be true even if t...
Statement : Some towers are pillars.
          Some pillars are buildings.
          All buildings a...
Statement :
No pen is a cover.
No cover is a page.
All pages are stickers.
Conclusion :
I. At least some pages are ...
Statements:
Only a few Rays are Radiation.
Some Radiations are laser.
Only Lasers are Derma.
Conclusion
I) Some...
The statements are given followed by four conclusions I, II, III and IV. You have to consider the statements to be true, even if they seem at variance f...
Statements:
Only Pocket are Purse
All Chain are Pocket
A few Zip are Pocket
Conclusions:
I. Some Zip can never ...
In each group of questions below are two conclusions followed by five set of statements. You have to choose the correct set of statements that logicall...
Statement :
All fruits are vegetables
Some vegetables are potatoes
No potato is a tomato
Conclusion :
I. Some fruit...
Statement:
I) No A is B
II) No B is C
III) Some D are C
IV) All D are E
Conclusion:
I) Some E are not D
II) Some A are C
III) No C is A
Statement:
A few Creams are green.
Only green are Pink.
Only a few Pink are brown.
No brown are red.   ...
Relevant for Exams:
