答案和详解如下： 1.Which of the following ratios is NOT part of the original DuPont system? A) Debt to total capital. B) Asset turnover. C) Equity multiplier. D) Net profit margin. The correct answer was A) The debt to total capital ratio is not part of the original DuPont system. The firm’s leverage is accounted for through the equity multiplier.
2.
Ratio
| 2003 | 2004 | Net profit margin | 0.15 | 0.18 | Total asset turnover | 1.60 | 1.75 | Financial leverage multiplier | 1.00 | 1.50 |
The return on equity (ROE) for 2003 and 2004 respectively is: A) 8% and 24%. B) 24% and 47%. C) 24% and 8%. D) 47% and 24%. The correct answer was B) ROE for 2003: 0.15 × 1.6 × 1.0 = 24%. Similarly, for 2004, ROE will be 47%.
3.If the company’s net profit margin declines to 0.10 in 2005, what total asset turnover would be needed in order to maintain the same ROE as in 2004, assuming there is no change in the financial leverage multiplier?
A) 2.50. B) 1.50. C) 3.15. D) 0.10. The correct answer was C) ROE for 2005 can be computed as follows: 0.1 × asset turnover × 1.5 = 0.4725. Hence, desired asset turnover will be 3.15.
4.When the return on equity equation (ROE) is decomposed using the original DuPont system, what three ratios comprise the components of ROE?
A) Gross profit margin, asset turnover, equity multiplier. B) Net profit margin, asset turnover, asset multiplier. C) Net profit margin, asset turnover, equity multiplier. D) Net profit margin, inventory turnover, equity multiplier. The correct answer was C) The three ratios can be further decomposed as follows: Net profit margin = net income/sales Asset turnover = sales/assets Equity multiplier = assets/equity
5.If a company has a net profit margin of 15 percent, an asset turnover ratio of 4.5 and a ROE of 18 percent, what is the equity multiplier?
A) 0.523. B) 0.267. C) 2.667. D) 3.135. The correct answer was B) There are many different ways to illustrate ROE one of which is: ROE = (net profit margin)(asset turnover)(equity multiplier) 0.18 = (0.15)(4.5)(equity multiplier) 0.18/[(0.15)(4.5)] = equity multiplier 0.18/0.675 = equity multiplier 0.18/0.675 = 0.267 | 
发表于 2008-4-9 16:29
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