7-2_a)_
ROE = ROA x Equity Multiplier = = = 7.56%. Du Pont Equations for Industry: ROA = (1.2%) (3.0) ... the ratios based on that year will be distorted and a comparison between them and industry averages would have little meaning. Potential investors who look only at 1989 ratios will be misled, and a return to normal conditions in 1990 could hurt the ... ................
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