Corporate decision makers and analysts often use a particular technique, called a DuPant analysis, to better understand the factors that drive a company's financial performance, as reflected by its return on equity (ROE). By using the DuPont equation, which disaggregates the ROE into three components, analysts can see why a company's ROE may have changed for better or worse and identify particular company strengths and weaknesses. The DuPont Equation A DuPont analysis is conducted using the DuPont equation, which helps to identify and analyze three important factors that drive a company's ROE. Complete the following equations, which are needed to conduct a DuPont analysis: Most investors and analysts in the financial community pay particular attention to a company's ROE. The ROE can be calculated 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 clearer picture of what is happening within a company. An analyst gathered the foliowing data and calculated the vanous terms of the DuPont equation for three companies: Referring to these dota, which of the following conclusions will be true about the companies' ROEs? The main driver of Company C's supenor nOE, as compared with that of Company A's and Company B's ROE, is its operational efficiency The man driver of Company C'S supenor ROE, as compared with that of Company A's and Company B's ROE, is its greater use of debt finaricing: The main driver of Compasy A's infenor RoE, as compared with that of Company Cs ROE, is ies higher total asset turnover ratio