Break down the return on equity (ROE) of the two firms below using a DuPont analysis....

 

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Break down the return on equity (ROE) of the two firms below using a DuPont analysis. Which of the following statements is correct? Firm Y Sales $ 800,000 $ Net income $ 148,080 $ Total assets $ 710,000 $ Total equity $ 460,000 $ Firm Z 2,950,000 669,355 2,680,000 1,600,000 a) Firm Z's operations are less profitable. b) Firm Y has a higher return on equity. d) Firm Y relies more on debt. c) Firm Z does a worse job of converting assets into sales. Break down the return on equity (ROE) of the two firms below using a DuPont analysis. Which of the following statements is correct? Firm Y Sales $ 800,000 $ Net income $ 148,080 $ Total assets $ 710,000 $ Total equity $ 460,000 $ Firm Z 2,950,000 669,355 2,680,000 1,600,000 a) Firm Z's operations are less profitable. b) Firm Y has a higher return on equity. d) Firm Y relies more on debt. c) Firm Z does a worse job of converting assets into sales.

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Ans Correct Option c Firm Z does a worse job of converting ... View the full answer