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CFA Level 1
Financial Reporting and Analysis

Calculate ROE Using DuPont Analysis

Hard Analysis Techniques Dupont Analysis

Consider a company that has the following metrics for the year: a net profit margin of 10%, an asset turnover ratio of 1.5, and a financial leverage ratio of 2.5.

Using DuPont Analysis, what is the company's Return on Equity (ROE)?

Hint

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