Extended Dupont Equation. This formula is known by many other names including dupont analysis dupont identity the dupont model the dupont method or the strategic profit model. A focused approach mindtap course 7th edition michael c.
Textbook solution for corporate finance. From the three step equation we saw that in general rises in the net profit margin asset turnover and leverage. A focused approach mindtap course 7th edition michael c.
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In order to achieve high roe a company must increase its ebit margin decrease its interest expense and taxes increase its asset utilization and include more debt in its capital structure. Formally the extended dupont formula is. Roe 25000 35000 35000 40000 40000 550000 550000 300000 300000 200000. The dupont equation.
