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Du Pont Analysis suggests that a given company's Return on Equity calculation can be decomposed into a number of contributory factors. With reference to the

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Du Pont Analysis suggests that a given company's Return on Equity calculation can be decomposed into a number of contributory factors. With reference to the Du Pont Equation, describe each of the factors and discuss how management can utilise the output of the Du Pont Analysis in reviewing a given company's overall financial performance. (15 marks) Describe the cash-flow based accruals ratio method of measuring earnings quality. Your answer should set out relevant formulac and contain a brief narrative. (10 marks)

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