Commonly referred to as the dupont equation

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Another way of calculating a firm's ROE is by employing the DuPont Identity, commonly referred to as the DuPont Equation. How is the DuPont Equation different from the ratio presented above? Are there similarities between the two methods of calculating ROE? What does the DuPont Equation tell you that the simple equation does not?

Reference no: EM131944577

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