Corporate decision makers and analysts often use a particular technique, called a Dupont analysis, to better understand the factors that drive a. company's financial performance, as reflected by its return on equity (ROE). By using the DuPont equation, which disaggregates the ROE into three components, analysts can see why a company's ROE may have changed for better or worse and identify particular company strengths and Weaknesses. The DuPont Equation A DuPont analysis is conducted using the DuPont equation, which helps to identify and analyze three important factors that drive a cornpany's Rof. Complete the following equations, which are needed to conduct a. Dupont analysis: Most investors and analysts in the financial community pay particular attention to a company's RoE. The RoE can be calculated simply by dividing a firm's net income by the firm's shareholder's equity. and it can be subdevided into the key factors that deive the RoE. Inverstors and analysta focus on these drivers to develop a clearer picture of what is happening withen a company. An analyst gathered the following data and calculated the various terms of the Dupont equotion for three companies: Nest investors and analysts in the financial community pay particular attention to a company's ROE. The ROE can be calculated simply by dividing a firmis net income by the firm's shareholder's equity, and it can be subdivided into the key factors that drive the RoF, fnvestors and analysts focus on these divers to develop a cleatef picture of what is happening within a company. An analyst gathered the following data and calculated the various terins of the Dupont equation for three companies: Referning to these data, which of the following conclusions will be true about the companies' ROEs? The main driver of Company C's superior ROE, as compared with that of Company As and Company B's ROE, is its greater use of debt financing. The maan driver of Company A's inferior ROt, as compared with that of Company a's and Company C's ROE, is its use of higher debt finanang. The main driver of Company A's unferior ROE, as compared with that of Company Cis ROE, is its higher total asset turnover ratio