Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer a Take a look at the ROE - Dupont Analysis below. You will notice, of the three (3) firms, two of them have

please answer aimage text in transcribed

Take a look at the ROE - Dupont Analysis below. You will notice, of the three (3) firms, two of them have the same exact ROE while ZEG CO stands out with the higher ROE. Please review the data breakdown below and using what you know regarding the various ratios that makup the Dupont Analysis, answer the below questions in a short-answer format. (1) Using only the information you have below, which of the 3 firms do you feel is a better investment and is doing a better job running their business? State why you feel that way. (2) Just comparing the two bottom firms which have the same ROE - LEG and QU Corp. (a) Please describe and comment on how the Dupont Analysis is able to help you make decisions regarding the two firms in terms of how they manage their firm. (b) In which firm would you prefer to invest given the below? Company ZEG CO ROEPMTATEM 33.76% 14.60% 1.25 1.85 21.39% 9.15% 0.85 2.75 21.39% 5.91% 0.71 5.10 LEG CO QU CO Take a look at the ROE - Dupont Analysis below. You will notice, of the three (3) firms, two of them have the same exact ROE while ZEG CO stands out with the higher ROE. Please review the data breakdown below and using what you know regarding the various ratios that makup the Dupont Analysis, answer the below questions in a short-answer format. (1) Using only the information you have below, which of the 3 firms do you feel is a better investment and is doing a better job running their business? State why you feel that way. (2) Just comparing the two bottom firms which have the same ROE - LEG and QU Corp. (a) Please describe and comment on how the Dupont Analysis is able to help you make decisions regarding the two firms in terms of how they manage their firm. (b) In which firm would you prefer to invest given the below? Company ZEG CO ROEPMTATEM 33.76% 14.60% 1.25 1.85 21.39% 9.15% 0.85 2.75 21.39% 5.91% 0.71 5.10 LEG CO QU CO

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Gold And Debt

Authors: William Lyman Fawcett

1st Edition

1144211727, 978-1144211729

More Books

Students also viewed these Finance questions