1. Conduct a DuPont decomposition of Lucents ROE for each quarter of 1998, 1999 and 2000. What factors contributed to the differences in Lucents performance between those quarters?

s 99 Post retirement and Benefit s 11 s 11.000 s 11502 s 1241 1019 4310 1078 Long Term Debt Libities o.013 6,015 10 a418 ssez 2,793 3812 3712 3710 2404 2409 1,918 2.308 2010 s 2.565 1948 1,969 2.113 s 24,753 s 23789 s 23204 s 21.186 20.357 s 1ae28 s 20081 s 2024 31 13 S Additional Paid incapta 4990 4700 4078 Retained Earnings 7.290 105 5.200 4384 3505 (251) Aoomaleled Omer Comprehensive Inoome a Loss 1364 1,314 (15E) 10,079 Total Llatiebes and Shareholder 12.403 S 9051 S 8437 s 5504 s 4922 s 4036 s 4671 s 3307 XHIBIT 4 LUCENT Consolidated Statements of Income Dec 99 Sep-99 Jun 99 Mar-99 D Junsa Marga Dec sepsr 9905 s Sep 88 s 7642 5 6184 s 8724 s 10,575 9,315 s 8.220 s 9,842 s 8,574 5,706 4,834 4,327 4,087 4,519 Total Revenues Cost of Sales Gross Margin 5.212 4131 3,555 2,748 4,205 3,060 Selang, General and Administrative Expenses 978 1,972 1,673 1.608 41 1.013 3,022 2675 2433 23 Total operating Expenses 3,125 304 Operating Income other income (Expense), net 63 Income Before Taxes 1.256 Income Tax Expense 1,175 S Excludes one 418/2017