Use the DuPont method to calculate the 2013 ROE for Bacon Signs. A) 0

Use the DuPont method to calculate the 2013 ROE for Bacon Signs.

A) 0.0961 * 0.46 * 4.30 = 0.1698 = 16.98%
B) 0.0961 * 0.46 * 1.81 = .0796 = 7.96%
C) 0.0961 * 0.41 * 1.88 = .0741 = 7.41%
D) 0.0961 * 0.41 * 1.00 = 0.0395 = 3.95%

ANSWER

C
Explanation: C) NI/Sales * Sales TA * TA/Equity = $713/$7,418 * $7,418/$18,063 * $18,063/$9,620 = 7.41%