CFA Level I sample question

CFA Level I Financial Analysis Techniques question

Financial Statement Analysis / Financial Analysis Techniques

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Financial Analysis Techniques sample question

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Financial Statement Analysis

Financial Analysis Techniques

An analyst decomposes Marlowe Retail's ROE using the five-component extended DuPont model. In Year 1: tax burden 0.75, interest burden 0.90, EBIT margin 12%, asset turnover 1.2, financial leverage 2.0. In Year 2: tax burden 0.75, interest burden 0.80, EBIT margin 12%, asset turnover 1.2, financial leverage 2.5. The increase in ROE from Year 1 to Year 2 is most likely attributable to:

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