Corporate decision makers and analysts often use a technique called DuPont analysis to understand and assess the factors that drive a financial performance, as measured by its return on equity (ROE). Depending on the version used, the DuPont equation willi deconstruct the firm's ROE, its best measure of financial performance, into two or three important factors, or drivers. DuPont analysis can be conducted using either the traditional DuPont equation or the extended DuPont equation. The traditional equation is constructed using two drivers, whereas the extended DuPont equation uses three variables to examine a firm's ROE performance. Complete the following sentences by entering the appropriate words or phrases. In the extended DuPont equation, a firm's ROE reflects (1) its use of debt financing, or leverage, as reflected by its (2) the efficiency with which it uses its assets, as measured by the its production costs and operating expenses, as summarized by its , and (3) its ability to generate sales and manage In contrast, in the traditional version of the equation, the firm's efficiency and profitability metrics are multiplied and summarized in a single measure, the financing decisions and its effectiveness and efficiency in generating profits using the firm's asset base. In this analysis, a company's financial performance is expected to result from both management's Most investors and analysts in the financial community observe a firm's ROE closely. The ROE can be calculated by dividing the firm's net income by the shareholders' equity, or it can be reduced into the key factors that drive the ROE. Investors and analysts like to focus on these drivers to develop a more holistic image of what is changing within a company. An analyst collected the following fiscal year 2010 data for firms operating in the transportation sector. Use the data to compute the net profit (NPM), total asset turnover (TAT), and equity multiplier (EM) values required for a DuPont analysis. (Note: The following dollar values are expressed in millions of U.S. dollars.) Net Total Common NPM TAT EM ROE Sales Income Firm AssetsEquity A $28,141 $8,700 $5,641 $2,431 E--g 3.23 $1,563 $180.2 $1,496 14.70% $10,636 $1,8158 $9,516 3.22 I 0.34 0.99% 2.64 $28,199 $10,669