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.
A piece of paper is folded and cut as shown below in the question figures from the given answer figures, indicates how it will appear when opened?
<...How many triangles are there in the given figure?
Select a figure from amongst the Answer Figures.
...
 Select the figure which will come next in the following figure series.
Select a figure from amongst the Answer Figures.
...
 Select the figure that will come next in the following figure series.
Select a figure from amongst the Answer Figures.
 Select a figure from amongst the Answer Figures.
<...
 Select a suitable figure from the Answer Figures that would replace the question mark (?) from question figure.
Relevant for Exams:
