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Du Pont System of Ratio Analysis 1a) List the intuitive interpretations (names of the five components of...

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Finance

Du Pont System of Ratio Analysis

1a) List the intuitive interpretations (names of the fivecomponents of the Return on Equity in the Du Pont System of RationAnalysis.

b) State whether a firms tax burden ratio will be higher orlower if it pays less taxes relative to pretax profit and givereason for your answer.

c) State whether a firms interest-burden ratio will be higher orlower if it pays more Interest relative to Earnings Before Interestand Taxes and give the reason for your answer.

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