Red Oak Manufacturing
The following information is available for the current year:
-Refer to Red Oak Manufacturing. The total leverage per the DuPont analysis computation is
A)2.30.
B)2.64.
C)12.40.
D)15.20.

Question

Red Oak Manufacturing
The following information is available for the current year: 
-Refer to Red Oak Manufacturing. The total leverage per the DuPont analysis computation is
A)2.30. 
B)2.64. 
C)12.40. 
D)15.20.

Quizplus · Accepted Answer

Total leverage = 1 + (Total debt / Total equity) = 1 + (1,000,000 / 431,818) = 2.30

Red Oak Manufacturing The Following Information Is Available for the Current Year