The DuPont Model measures ROE by multiplying __________.

A. the current ratio x total asset turnover x the equity multiplier
B. the profitability ratio x times interest earned x the equity multiplier
C. the profitability ratio x total asset turnover x the equity multiplier
D. the current ratio x times interest earned x the equity multiplier

ANSWER:

C. the profitability ratio x total asset turnover x the equity multiplier