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PART B: You now use the information provided in the WeRHere4U's financial statements to perform the following DuPont Analysis of the Return on Equity (ROE)

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PART B: You now use the information provided in the WeRHere4U's financial statements to perform the following DuPont Analysis of the Return on Equity (ROE) for each of the years 2017, 2018 and 2019. DU PONT ANALYSIS 2019 2018 2017 Return on Equity (ROE) 0.6170 0.5444 0.5110 Return on Capital Employed (ROCE) 0.5913 0.6000 0.6390 Operating Profit Margin 0.3676 0.3677 0.3704 Capital Turnover 1.6087 1.6316 1.7252 Tax and Interest ratio 0.6125 0.6447 0.6720 Leverage 1.7037 1.4074 1.1901 Required: (a) Explain the meaning and interpretation of EACH of these ratios. [Maximum 60 words EACH] (12 marks) (b) Explain the trend in each of these ratios over the last 3 years? [Maximum 200 words] (6 marks) (c) What is your assessment of Pete's claims that he has managed a substantial improvement in WeRHere4U's Return on Equity? How has Pete managed to achieve this performance? Explain using your computations. [Maximum 100 words] (3 marks) (d) Why is this analysis useful to assess Pete's claims that the performance of WeRHere4U has been excellent over the last 3 years? [Maximum 100 words]

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