C01 ยท Lesson 22 of 27 ยท 13 min ยท 5 hands-on tasks
DuPont: Where Returns Come From
Two companies both earn a 20% return on equity. One sells luxury goods at fat margins; the other sells groceries fast on borrowed money. Split ROE into its three engines, find which one drives Larkfield, and see why the CEO's promised ROE jump doesn't impress a lender.
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