Du Pont ratio analysis breaks the return on equity ratio as following:

ROE = profit margin * total assets turnover * equity multiplier

what are the 3 components( profit margin, total assets turnover, and equity multiplier) for Lows Inc for year 1?

1) 0.08, 1.20 and 2.23

2) 0.10, 1.10 and 2.10

3) 0.10, 1.09 and 2.12

4) 0.10, 1.31 and 1.64

INCOME STATEMENT Revenue Cost of goods sold Gross profit Year o 4,905 2.776 2,129 165 1,183 781 303 Year 1 5,323 2.943 2.380 197 1.410 773 110 Depreciation Other expenses Operating income Interest Expense Income before taxes Provision for income taxes @ 21% 478 100 563 139 Net income 378 BALANCE SHEEET ASSETS Year o Year 1 Cash and marketable securities Short-Term investments Receivables Inventories Total Current Assets Total Fixed Assets 210 568 563 249 1.590 2.514 191 749 736 278 1.954 2,890 Total assets! 4,104 LIABILITIES AND EQUITY Notes Payable Accounts payable Accruals 250 115 451 363 177 591 Total current liabilities Total non-current liabilities 816 1.446 1.131 1.410 Total liabilities 2,262 2.541 Common stock and additional pald-in capital Retained earnings 615 1.222 209 1.594 Total stockholders' equity 1.842 2 303 Total liabilities and stockholders' equity 4,104 4,844 Diluted no. of shares Stock price WACC Dividend & repurchases per share 99.60 76 89.58 214 7.0% 1.75 $