Module 5 Business 4

 

As a stock analyst you are comparing performance between a discount merchandiser and a high-end merchandiser through a ratio analysis.  Suppose that both companies have identical ROEs.  If you apply the DuPont equation to both firms, would you expect the three components to be the same for both companies?  If not, explain what balance sheet and income statement items might lead to the differences in the DuPont equation components.

Instructions:

Please post your initial response by 23:59 EST Day 3 of the Week, and comments on the posts of at least two classmates by 23:59 EST Due Date.

You must first post your own response directly to the Discussion Topics by Day 3 before accessing other students responses. In addition, you should post at least TWO thoughtful and substantive responses to other classmates answers/comments by the due date in order to earn 5 points for each Discussion Topic. A mere Yes, I agree or No, I dont agree type of responses will not be given any credit.

Additional bonus credit may be given to substantive responses reflecting additional research with sources of information clearly identified as they are particularly valued and enrich our online learning.

Concluding comments on each Discussion Topic will be posted on the Discussion folder after due date.