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ROE DuPont Method (5 part)

October 2, 2015

ROE = (NI/EBT) X (EBT/EBIT) X (EBIT/Revenue) X (Revenue/Average Assets) X (Average Assets/Average Equity)

ROE = Tax Burden X Interest Burden X EBIT (Operating Margin) X Total Asset Turnover X Financial Leverage

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