# Chap 3 Quiz - Homework Manager View My Grades Corporate Finance FIN 301 Spr http/mh3.brownstone.net/modules/viewRecord.Login View My Grades

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View My Grades HOMEWORK MANAGER > STUDENTS > VIEW MY GRADES > ALL QUESTIONS Question 1: Score 0/1 Your response Correct response Du Pont Identity If Windemere Legal has an equity multiplier of 1.7, total asset turnover of 1.15, and a profit margin of 7 percent, then its ROE is 16.06 (0%) percent. (Input answer as a percent rounded to 2 decimal places, without the percent sign.) Du Pont Identity If Windemere Legal has an equity multiplier of 1.7, total asset turnover of 1.15, and a profit margi its ROE is 13.68 with a tolerance of ± 1.0% percent. (Input answer as a perc decimal places, without the percent sign.) Total grade: 0.0×1/1 = 0% Feedback: With the information given, we must use the DuPont identity to calculate return on equity. Doing so, we find: ROE = (Profit margin)(Total asset turnover)(Equity multiplier) ROE = (0.07)(1.15)(1.7) ROE = 0.1368 or 13.68% Question 2: Score 1/1 Your response Calculating Inventory Turnover Touché Corporation has ending inventory of \$420,000 and cost of goods sold for the year just ended was \$2,058,000. (Round your answers to 2 decimal places)

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## This note was uploaded on 10/10/2010 for the course FIN 301 taught by Professor Andelin,stevenle during the Spring '07 term at Pennsylvania State University, University Park.

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Chap 3 Quiz - Homework Manager View My Grades Corporate Finance FIN 301 Spr http/mh3.brownstone.net/modules/viewRecord.Login View My Grades

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