If the DuPont Analysis for Apple (in 2018) is 54.77% and the same analysis for Microsoft...

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Finance

If the DuPont Analysis for Apple (in 2018) is 54.77% and thesame analysis for Microsoft (also in 2018) is 39.88%, then...

  • Explain how the debt has served to influence the ROE DuPontperformance results for each company you choose, and then describehow volatility plays a role in the debt choices in the context ofthis DuPont analysis. Explore the factors that influence thevaluation of equity.

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DuPont examines the return on equity analysing profit margin asset turnover and financial leverage So formula is ROE profit margin asset turnover leverage Net incomerevenue revenuetotal assets total assetsshareholders equity So it shows that shareholders equity is determined from total assets less debt and if debt is high then equity is low and results into higher ROE and low    See Answer
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