1)Using the five-way DuPont deconstruction of ROE, what is the ROE for a firm with the following:

Net income (not given)

Pretax profit 9.63

EBIT 13.02

Total Sales 162.8

Actual net tax rate 0.1

Avg Assets 74

Avg Equity 37

2)You are considering a new supplier that you estimate would reduce your costs 0.009, increasing overall EBIT margin the same amount, or 90 basis points. Using 5-way DuPont ratios, what would be the ROE after the changes are made? Net income 5.346 Pretax profit 7.529 EBIT 10.039 Total Sales 91.26 Avg Assets 50.7 Avg Equity 39"