Return on Equity (ROE).12

Dividends$288

Accounts Payable$900

Average Days Payable33

Total Liabilities$5,000

Retention Ratio0.60

Profit Margin.05

Tax Rate.24

a. Conduct a three-stage ROE Decomposition (DuPont Analysis) for Mattel.

b. As you are explaining how to conduct the ROE Decomposition, your assistant asks, "Because increasing the equity multiplier will increase the return on equity (ROE), Mattel should attempt to maximize its equity multiplier."Explain whether you would agree or disagree.\