29、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted.
An analyst has calculated the following ratios for a firm:

The return on equity for this firm would be closest to:

A. 4.48%.

B. 6.40%.

C. 15.20%.

D. 17.92%.

[此贴子已经被作者于2008-11-7 16:11:08编辑过]

Correct answer = D

"Financial Analysis Techniques," Thomas R. Robinson, Hennie van Greuning, Elaine Henry, and Michael A. Broihahn
2008 Modular Level I, Vol. 3, pp. 604-609
2008 Modular Level I, Vol. 4, pp. 136-143
Study Sessions 10-41-f, 11-47-a
demonstrate the application of Du Pont analysis (the decomposition of return on equity);
calculate, interpret, and discuss the Du Pont expression and extended Du Pont expression for a company's return on equity, and demonstrate its use in corporate analysis
ROE = Net Profit Margin x Sales/Total Assets x Total Assets / Equity = 4.00 x 2.80 x 1.60 = 17.92%
Alternatively, ROE = Return on Total Assets x Total Assets / Equity = 11.20 x 1.60 = 17.92% 

thanks

谢！