Question: Company X has seen a sharp decline in Return on Equity.Briefly explain how ratio analysis (or DuPont analysis) can be used to investigate the source

  1. Company X has seen a sharp decline in Return on Equity.Briefly explain how ratio analysis (or DuPont analysis) can be used to investigate the source of this decline.
  2. Company X produces a product, GlueX3, that Company X sales for $5.An opportunity presents itself to reallocate its manufacturing facility and related resources to produce Epoxy10.It believes it can sell Epoxy10 for $8.Explain how this switch creates "value".Be sure to include for whom.

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