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Select two firms within the Aviation industry and analyze the Return on Equity (ROE) of both firms and the market valuation ratios. Select two firms,
Select two firms within the Aviation industry and analyze the Return on Equity (ROE) of both firms and the market valuation ratios. Select two firms, one with a relatively high ROE and one with a relatively low ROE in the industry. Analyze each of the firms taking into consideration the components of ROE. Compare each of the components of ROE. Express DuPont Identity or DuPont Analysis in your analysis. Address why one firm has a high ROE, why one firm has a low ROE and what could be done to improve the lower performing firm based on ROE. Perform similar contrast and comparisons for the market value ratios. Adress issues such as marketing, asset utilization, financing and if your chosen firm appears to be under or overvalued.
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