1) Identify whether investors would be happy with LAR performance based on Modified DuPont System. Identify the firm's strengths and weaknesses. 

2) Provide a suggestion/note to LAR management on how the firm should improve or maintain various aspects of their corporate finance (based on Modified DuPont System) through a 3-page executive summary document. Be insightful and clear as much as possible.

Modified Du Pont System (7 points) Integrated Analysis of a Company's Profitability LAURA Incorporation (LAR) is a well-established and reasonably successful company in the rather-competitive apparel business, focusing on streetwears. In spite of its outstanding position in its industry (e.g.with the highest number of followers on Instagram and Facebook in comparison to other streetwears merchants/houses), LAR managers wish to assess the firm's strengths and/or weaknesses for managerial purposes. Details of LAR and its industry are given as follows: 

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LAR Industry EPS $9.5 $5.5 ROE N/A 12% Profit margin N/A 4% Total Asset Turnover N/A 1 Equity multiplier Stock price # of shares outstanding (shrs)1,000,000 Equity (book value) per shareS40 N/A 3 $77 Sales 70,000,000 Total Asset 100,000,000 LAR Industry EPS $9.5 $5.5 ROE N/A 12% Profit margin N/A 4% Total Asset Turnover N/A 1 Equity multiplier Stock price # of shares outstanding (shrs)1,000,000 Equity (book value) per shareS40 N/A 3 $77 Sales 70,000,000 Total Asset 100,000,000

Answer rating: 100% (QA)

STRENGTHS AND WEAKNESS OF DUPONT ANALYSIS DuPont analysis is an equity evaluation approach that uses financial and leverage ratios that expand the profitability ratio of return on equity ROE into a mo... View the full answer