Teaching UGC NET Mock Test Series 2025 (Paper 1 & 2) Accountancy Financial Statement Analysis Ratio analysis
As per Du Pont equation for ROE, other things remaining constant, which of the following statements is false?
A. An increase in the net profit margin will increase the ROE.
B. A decrease in debt to asset ratio will increase the ROE.
C. A decrease in return on assets will decrease the ROE.
D. An increase in the average asset turnover will increase the ROE.
E. An increase in equity multiplier will increase the ROE.
Choose the correct answer from the options given below:
1
B only
2
C, D only
3
A, E only
4
A, C only