21. (10 Points) This is a show your work problem in four (4) parts. Your answer must be clear and you must show your work for each part to receive full credit.

Using the MicroDrive 2001 financial statements, answer each of the following there's (3) questions:

a. Name (and show the formula) for the 3 ratios of the DUPONT EQUATION.

b. Calculate ROE using the Dupont Equation for MicroDrive for 2001. Show the numbers you are using in the Dupont equation to arrive at the ROE using the Dupont Equation!

c. Calculate ROE directly, using the formula for ROE and NOT the DUPONT EQUATION, to show that you have arrived at the same answer as in part b.

d. Describe what areas of the company the 3 ratios of the DUPONT EQUATION highlight and how each of them might be interpreted (for example: A low (high) value for this component would indicate)