You have the following data about a company:

: $$450,000$

Sales

: $300,000$

Total assets

$22,500$

Net income

: $100,000$

Accounts payable and Accrued expenses

: not known

Interest$-$bearing debt

: not known

Stockholders' equity

Your analyst has presented you with the following ratios:

Return on Equity $($ROE$)$

: $22\mathrm{.}5\%$

Return on Assets $($ROA$)$

: $7\mathrm{.}5\%$

Profit margin

: $5\%$

Asset turnover

: not known

Equity multiplier

: not known

Required:

A$.$

$($i$)$ Identify the ROE drivers according to the DuPont equation

$5$ marks

$($ii$)$ Write the extended DuPont equation

$5$ marks

B$.$ Calculate the following:

$($i$)$ Asset turnover

$3$ marks

$($ii$)$ Equity multiplier

$3$ marks

$($iii$)$ Debt$-$equity ratio

$5$ marks

$($iv$)$ Liabilities$-$to$-$equity ratio $=$ Total liabilities $-$ Stockholders' equity

$5$ marks

C$.$ If all of the company's assets are operating assets, what are the company's net operating assets $($NOA$).$