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(b) Two companies namely Seeta and Rama, operate in the same industry and have the same Return on Equity of 0.45. Each of the companies

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(b) Two companies namely Seeta and Rama, operate in the same industry and have the same Return on Equity of 0.45. Each of the companies have presented the following ratios. Ratio Seeta Rama Profit Margin 30% 115% .50 6.0 Total Asset Turnover Financial 3.0 1.50 Leverage Though the companies have the same overall ROE, the companies' operations are completely different. Apply Dupont analysis to show the strengths and weaknesses of each company. (15Marks)

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