Question: can you answer these questions ? a Search this course Ch 04: Assignment - Analysis of Financial Statements 8. The Dupont equation Corporate decision makers

can you answer these questions ?
can you answer these questions ? a Search this course Ch 04:
Assignment - Analysis of Financial Statements 8. The Dupont equation Corporate decision

a Search this course Ch 04: Assignment - Analysis of Financial Statements 8. The Dupont equation Corporate decision makers and analysts often use a particular technique, called a Durant anys, to better understand the factors that drive company financial performance, as reflected by its return on equity (ROE). By using the DuPontuation, which disaggregates the ROE into three components, analysts can see why a company's ROE may have changed for better or worse and Sentily particular company strength and weaknesses, The DuPont Equation Office 365 A DuPont analysis is conducted using the DuPont equation, which helps to identity and analyze the Important factors that drive a company ROE According to the equation, which of the following factors directly affect a company's ROE? Check all that com Net Income Sales Sales/Total Ass El Price per Share Earnings der Share Most investors and analysts in the financial community Day particular attention to a company's ROE The ROE can be called s molby dividing a tirm's not income by the firm shareholders equity and it can be subdivided into the key factors that drive the ROE Investors and analyst focus on these drivers to develop a dearer picture of what is happening within a company. An analyst athered the following data and calculated the various terms of tht Ou Pontion for the companies RO Profit Margin X Total Assets Turnover Equity Multiplier Com PPM Most investors and analysts in the financial community pay particular attention to a company's ROE. The ROE can be called simply by dividing a firm's net income by the firm's shareholder's equity, and it can be subdivided into the key factors that drive the ROE Investors and analysts focus on these drivers to develop a dearer picture of what is happening within a company. An analyst gathered the following data and calculated the various terms of the DuPont equation for three companies: ROE x x Total Assets Turnover 9.8 Profit Margin 57.3% 58.29 Equity Multiplier 2.14 Company A Company B Company C 12.0% 155 1002 2.61 21.5% 58.0 10.3 3,50 Referring to these data, which of the following conclusions will be true about the companies ROES? The main driver of Company A's Inferior ROE, as compared with that of Company B and Company C's ROE, is its use of higher debt financing The main driver of Company Cs superior ROE, as compared with that of Company As and Company B'S ROE is its greater use of debt financing The main driver of Company is superior ROE as compared with that of Company A's and Company B's ROE is its efficient use of assets

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