As a stock analyst you are comparing performance between a discount merchandiser and a high-end merchandiser

As a stock analyst you are comparing performance between a discount merchandiser and a high-end merchandiser

As a stock analyst you are comparing performance between a discount merchandiser and a high-end merchandiser 150 150 Peter

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.

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