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Question 20 1.5 pts The DuPont formula defines the net return on shareholders' equity as a function of the following components: Tax burden Interest burden
Question 20 1.5 pts The DuPont formula defines the net return on shareholders' equity as a function of the following components: Tax burden Interest burden Operating pront margin Asset turnover Financial leverage Both The TJX Companies (NYSE:UX) and Ross Stores (NASDAQ ROST) are popular off-price retailers that sell brand-name goods at 20% to 60% less than the competition. Based on the DuPont analysis below, which company is a better investment. Please give your reasons. The TX Companies 2015 2014 2013 ROE 0.5315 0.5216 0.5414 Tax burden 0.6226 0.6240 0.6439 Interest burden 0.9875 0.9889 0.9907 Operating profit margin 0.1197 0.1234 0.1222 Asset turnover 2.7521 2.7446 2.7822 Financial leverage 2.6237 2.4946 2.4966 Ross Stores 2015 2014 2013 ROE 0.4296 0.4315 0.4437 Tax burden 0.6333 0.6226 0.6233 Interest burden 0.9922 0.9980 1.0002 Operating profit margin 0.1360 0.1348 0.1313 Asset turnover 2.4988 2.5726 2.7038 Financial leverage 2.0114 2.0026 2.0050
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