equity multiplier formula

Please help this problem ..... Finance : O) Dupont Dupont Model and the extended model?

Du Pont models are very important for Finance. Them strategies.There can develop two models: 1Du Pont Model: This model is used to calculate Return on assets (ROA). It employs the following according to the formula: ROA = PM x PM = if Tato Tato Margin = total asset turnover 2Extended DuPont Model: This model calculates the return on equity, the following formula: ROE = ROA x EM where.ROE = Return on equity, EM = Equity Odds ROA = Return on Asset market price per share is considered a function of ROE. Recently, the company's price per share has been stagnant. You have been asked to recommend three strategies to increase the value of the ROE to increase the market price per share. "Prove all three strategies,"

1. Increase profit margin: if you add a profit margin, while similar ceretis ROE when you grow ... since PM = Profit / Sales so increase the unit price and sell the same number of units and keep the price of goods sold at a standstill. 2. Increase Sales: increase your sales and keep the same kind ceretis ROE then you will increase because Tato is a sales / assets 3 Increase Assets: Take on more debt to a higher EM. EM = assets / equity.

EEP100 - Lecture 20

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