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Use the following data to analyze ROE for 2009 and 2010 using the extended DuPont formula (5 component model). in millions 2010 2009 2008 Revenue

Use the following data to analyze ROE for 2009 and 2010 using the extended DuPont formula (5 component model).

in millions

2010

2009

2008

Revenue

$100,000

$96,000

Earnings before interest and taxes

10,000

10,560

Earnings before tax

8,000

8,500

Net income

5,000

4,600

Total assets

315,000

285,000

238,000

Stockholders equity

25,000

26,000

28,000

14. The change in ROE from 2009 to 2010 is LEAST likely attributable to the change in the firm's

Net Profit Margin.

Total Asset Turnover

Financial Leverage

15. The change in the Profit Margin from 2009 to 2010 can most likely be traced to a change in the firm's

Tax Burden.

Interest Burden.

EBIT Margin.

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