Using dupont identity-what is the return on equity


Kleaner Kars has a return on assets of 6.75 percent, a total asset turnover rate of 1.3, and an equity multiplier of 1.6. Using the Dupont Identity, what is the return on equity?

a. 8.30 percent

b. 8.78 percent

c. 10.80 percent

d. 14.04 percent

e. 14.33 percent

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